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§ 8078.24. Loan Enrollment.

4 CA ADC § 8078.24Barclays 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 § 8078.24
§ 8078.24. Loan Enrollment.
(a) The terms and conditions of the Qualified Loans, including rates, and fees, shall be determined solely by agreement between the Participating Financial Institution and the Borrower.
(b) A Participating Financial Institution shall be authorized to enroll under the Program all or a part of any Qualified Loan by notifying the Authority in writing, within 15 business days after the Qualified Loan is made, that the Participating Institution 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.
(c) The notification to the Authority shall include at least the following information:
(1) Borrower name, which includes the Borrower's legal name and the name by which the Borrower does business, if any, and the business address.
(2) Brief description of the Borrower's business and regular activities, Census Tract Number associated to the Borrower's business address, and the location of the facilities being financed if different, the NAICS Code(s) applicable to Borrower's business, and the amount of its average annual revenue for the past three (3) years.
(3) Whether this business has been open for two (2) years or more, and is owned by one of the following: a woman, minority, or veteran.
(4) Brief summary of the intended use of the proceeds of the Qualified Loan consistent with Eligible Purchases, including the tractor model, engine model and fuel type of each vehicle, the model of each trailer or diesel particulate filter, and the number of each Eligible Purchase.
(5) Amount of the Qualified Loan being enrolled in the Program, the total amount of loan, and the Participating Financial Institution loan number.
(6) Whether the Qualified Loan is secured or unsecured, and whether it is a term loan or TRAC lease.
(7) Date of the Qualified Loan, based on the first disbursement of proceeds to the Borrower.
(8) Interest rate applicable to the Qualified Loan.
(9) Term or maturity date of the Qualified Loan.
(10) Certification by the Participating Financial Institution of the following:
(A) The Borrower has validated the number of employees currently employed by the Borrower.
(B) The loan is a Qualified Loan for Eligible Costs, and that the business receiving the Qualified Loan is a Qualified Business.
(C) The Borrower's business activity has its Primary economic effect in California, and the vehicle is registered in California, substantiated by the California Department of Motor Vehicles.
(D) Upon request by the Executive Director, the Participating Financial Institution shall provide information from the financial records of the Borrower, including documents validating the Borrower's establishment of a business entity, and that the Participating Financial Institution has obtained the consent of the Borrower to such disclosure.
(E) The total amount of loans for the borrower enrolled in the CalCAP/ARB Program does not exceed $2,500,000 over a three year period.
(F) The Participating Financial Institution has obtained a written representation from the Borrower that the Borrower has no legal, beneficial or equitable interest in the CalCAP/ARB Contribution.
(G) The Participating Financial Institution has validated that the Borrower has secured all applicable licenses and permits to conduct its business.
(H) The lending activities of the Participating Financial Institution are subject to any applicable safety and soundness standards as set forth in applicable lending regulations.
(I) The Participating Financial Institution has not, and will not, enroll the Qualified Loan, or any portion thereof, in any other government program substantially similar to the Program.
(J) No portion of the loan is a Refinance.
(K) The Participating Financial Institution has provided the Borrower the Authority's Privacy Notice for the CalCAP/ARB On-Road HDV Air Quality Loan Program, which provides the notice required under the California Information Practices Act (Civil Code section 1798.17). The Privacy Notice informs the Borrower that personal information protected by the CIPA may be disclosed under the following circumstances:
(i) To consultants, auditors or contractors retained by the Authority or ARB where disclosure is required to fulfill CalCAP/ARB Program requirements and subject to a nondisclosure agreement;
(ii) To another governmental entity where required by state or federal law; or
(iii) As otherwise required by law.
(L) The Participating Financial Institution will make available to the Authority all books and records related to the use of the funds in the Loss Reserve Account;
(M) The Participating Financial Institution shall be authorized to certify to the information requested under subdivisions (c)(10)(A), (B), (C), (D), (F), (G), and (H) based upon the Participating Financial Institution's established due diligence and underwriting standards applied in the regular course of business, and shall maintain substantiating documentation in the Borrower's loan file.
(11) The submittal of a completed Borrower's Eligibility Criteria and Self-Certification form in which the Borrower certifies that:
(A) The Borrower is using the proceeds to purchase on-road heavy duty diesel vehicle(s) or other Eligible Purchases to comply with ARB's Statewide In-Use Truck and Bus Regulation as defined in Section 2025, Title 13, of the California Code of Regulations;
(B) The Borrower's business activities have a Primary economic effect in California;
(C) The Borrower agrees to allow the Participating Financial Institution to provide information from financial records of the Borrower upon request of the Executive Director;
(D) The Borrower has no legal, beneficial, or equitable interest in the CalCAP/ARB Contribution;
(E) The Borrower meets state and federal requirements to operate in California and that the Borrower has secured all applicable licenses and permits needed to conduct business;
(F) The enrolled amount of the loan in this Program is limited to Eligible Purchases;
(G) The Borrower agrees to allow the Authority or its designee to review all information in the loan file maintained by the Participating Financial Institution;
(H) The Borrower either has or has not received any grants or vouchers through the ARB's Proposition 1B Goods Movement Emission Reduction program, the ARB's Carl Moyer On-Road Heavy Duty Vehicle Voucher Incentive program or the ARB's Hybrid and Zero-Emission Truck and Bus Voucher Incentive project for the financed vehicle(s);
(I) The Borrower agrees to allow ARB staff or its designee to inspect the affected vehicle(s);
(J) The Borrower does not have a total enrolled principal amount in excess of $2,500,000 at any CalCAP Participating Financial Institution over a three (3) year period;
(K) The Borrower has received CPCFA's CalCAP/ARB Privacy Notice and that the Borrower is not any of the following: an executive officer, director, or principal shareholder of the Participating Financial Institution; a member of the immediate family of any of those individuals; or a related interest of those individuals; and
(L) The accuracy of specific information regarding the fleet size, the vehicle, and equipment, including: truck(s) gross vehicle weight rating, engine manufacturer, model year, and horsepower, replacement truck(s), device(s) manufacturer, and model and technology type.
(d) The Participating Financial Institution must notify the Authority whenever the material terms of an enrolled loan change prior to maturity, including TRAC Lease assumptions, by submitting a Change in Terms notification within fifteen (15) business days after such change.
(1) If any of the terms other than the interest rate have changed, then the Participating Financial Institution shall also submit an amended loan enrollment application, including new lender and borrower certifications, for the loan.
(2) If the Authority determines that the changes in material terms constitutes an ineligible Refinance or not a Qualified Loan as defined in Section 8078.22, neither the original nor the revised loan will continue to be enrolled in the Program.
(3) Notwithstanding the ineligibility of a Refinance, the Authority may authorize an extension of the maturity date of an enrolled loan for up to eighteen (18) months, if the Participating Financial Institution has provided the Authority written certification to its credit policy that provides for such extensions of the maturity date. Such authorization is contingent upon the submittal of the Change in Terms, an amended loan enrollment application, and new lender and borrower certifications for the loan.
(e) Loan enrollments submitted after August 15, 2017 will be subject to Recapture as specified in Section 8078.25.

Credits

Note: Authority cited: Sections 44520, 44559.5 and 44559.11, Health and Safety Code. Reference: Section 44559.2, Health and Safety Code; and Section 1798.17, Civil Code.
History
1. New section filed 8-7-2017 as an emergency; operative 8-7-2017 pursuant to Health and Safety Code section 44520(b) (Register 2017, No. 32). A Certificate of Compliance must be transmitted to OAL by 2-5-2018 or emergency language will be repealed by operation of law on the following day, pursuant to Health and Safety Code section 44520(b).
2. Certificate of Compliance as to 8-7-2017 order, including new subsections (d)-(d)(3) and redesignation of former subsection (c)(12) as new subsection (e), transmitted to OAL 1-31-2018 and filed 3-15-2018; amendments operative 3-15-2018 pursuant to Government Code section 11343.4(b)(3) (Register 2018, No. 11).
3. Amendment of subsections (c)(10)(C) and (d)(3) filed 7-31-2020 as an emergency; operative 7-31-2020 (Register 2020, No. 31). Emergency expiration extended 60 calendar days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-66-20). A Certificate of Compliance must be transmitted to OAL by 5-28-2021 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 7-31-2020 order, including amendment of Note, transmitted to OAL 11-24-2020 and filed 1-11-2021; amendments operative 1-11-2021 pursuant to Government Code section 11343.4(b)(3) (Register 2021, No. 3).
This database is current through 6/7/24 Register 2024, No. 23.
Cal. Admin. Code tit. 4, § 8078.24, 4 CA ADC § 8078.24
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