reglab/statecodes huggingface dataset:
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129065.

129065. As part of its assurance under subdivision (j) of Section 129050, any borrower that is a general acute care hospital or acute psychiatric hospital shall agree to the following actions:
(a)  To advise each person seeking services at the borrower’s facility as to the person’s potential eligibility for Medi-Cal and Medicare benefits or benefits from other governmental third party payers.
(b)  To make available to the department and to any interested person a list of physicians with staff privileges at the borrower’s facility, that includes:
(1)  Name.
(2)  Speciality.
(3)  Language spoken.
(4)  Whether takes Medi-Cal and Medicare patients.
(5)  Business address and phone number.
(c)  To inform in writing on a periodic basis all practitioners of the healing arts having staff privileges in the borrower’s facility as to the existence of the facility’s community service obligation. The required notice to practitioners shall contain a statement, as follows:
“This hospital has agreed to provide a community service and to accept Medi-Cal and Medicare patients. The administration and enforcement of this agreement is the responsibility of the Department of Health Care Access and Information and this facility.”
(d)  To post notices in the following form, that shall be multilingual where the borrower serves a multilingual community, in appropriate areas within the facility, including but not limited to, admissions offices, emergency rooms, and business offices:
NOTICE OF COMMUNITY SERVICE OBLIGATION
“This facility has agreed to make its services available to all persons residing or employed in this area. This facility is prohibited by law from discriminating against Medi-Cal and Medicare patients. Should you believe you may be eligible for Medi-Cal or Medicare, you should contact our business office (or designated person or office) for assistance in applying. You should also contact our business office (or designated person or office) if you are in need of a physician to provide you with services at this facility. If you believe that you have been refused services at this facility in violation of the community service obligation you should inform (designated person or office) and the Department of Health Care Access and Information.”
The borrower shall provide copies of this notice for posting to all welfare offices in the county where the borrower’s facility is located.
(Amended by Stats. 2021, Ch. 143, Sec. 237. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129070.

129070. In the event the borrower cannot demonstrate that it meets the requirement of Section 129055, it may nonetheless be eligible for a loan under this chapter if it presents a plan that is satisfactory to the department that details the reasonable steps and timetables that the borrower agrees to take to bring the facility into compliance with Section 129055.
(Amended by Stats. 2021, Ch. 143, Sec. 238. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129075.

129075. (a)  Each borrower shall provide any reports as may be required of it by Part 5 (commencing with Section 128675), from which the department shall determine the borrower’s compliance with subdivision (j) of Section 129050.
(b)  If a report indicates noncompliance with subdivision (j) of Section 129050, Section 129055, or Section 129065, the department shall require the borrower to submit a plan detailing the steps and timetables the borrower will take to bring the facility into compliance.
(c)  The department shall annually report to the Legislature the extent of the borrowers’ compliance with their community service obligations pursuant to subdivision (j) of Section 129050, Section 129055, and Section 129065.
(Amended by Stats. 2021, Ch. 143, Sec. 239. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129080.

129080. The department may impose additional appropriate remedies and sanctions against a borrower when any of the following occurs:
(a)  The department determines that the annual compliance report required in Section 129075 indicates that the borrower is out of compliance with subdivision (j) of Section 129050.
(b)  A facility fails to carry out the actions agreed to in a plan approved by the department pursuant to Section 129070.
(c)  The facility fails to submit compliance reports as required by Section 129075. The additional remedies include referring the violation to the office of Attorney General of California for legal action authorized under existing law or other remedy at law or equity.
However, the remedies obtainable by legal action shall not include withdrawal or cancellation of the loan insurance provided under this chapter.
(Amended by Stats. 2021, Ch. 143, Sec. 240. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129085.

129085. (a)  If a borrower is unable to comply with subdivision (j) of Section 129050 due to selective provider contracting under the Medi-Cal program, and the department has determined the borrower has negotiated in good faith but was not awarded a contract, the borrower may be eligible for insurance under this chapter as provided in subdivision (b).
(b)  The department may determine that a noncontracting borrower shall be considered as meeting the requirements of subdivision (j) of Section 129050 if the borrower otherwise provides a community service in accordance with regulations adopted by the department. The regulations shall describe alternative methods of meeting the obligation, that may include, but not be limited to, providing free care, charity care, trauma care, community education, or primary care outreach and care to the elderly, in amounts greater than the community average. The regulations shall include a requirement that a general acute care hospital, that is not a small and rural hospital as defined in Section 124840, shall have, and continue to maintain, a 24-hour basic emergency medical service with a physician on duty, if it provided this service on January 1, 1990. The department shall have the authority to waive this requirement upon a determination by the director that this requirement would create a hardship for the hospital, be inconsistent with regionalization of emergency medical services, or not be in the best interest of the population served by the hospital.
(Amended by Stats. 2021, Ch. 143, Sec. 241. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129087.

129087. The department shall develop and maintain a formal system of monitoring borrowers, in order to assist the department in detecting at the earliest possible date those borrowers who are experiencing financial difficulties. This system shall include, but shall not be limited to, all of the following:
(a)  A method of tracking the receipt of information that borrowers are required by law and regulatory agreement to submit to the department.
(b)  A process for thoroughly reviewing borrowers’ financial statements, budgets, auditor’s management letters, and health facility utilization trends.
(c)  Timely and structured site visits to insured facilities.
(Amended by Stats. 2021, Ch. 143, Sec. 242. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129090.

129090. Pursuant to this chapter, political subdivisions and nonprofit corporations may apply for state insurance of needed construction, improvement, or expansion loans for construction, remodeling, or acquisition of health facilities to be or already owned, established, and operated by them as provided in this chapter. Applications shall be submitted to the department by the nonprofit corporation or political subdivision authorized to construct and operate a health facility. Each application shall conform to the requirements of the department, shall be submitted in the manner and form prescribed by the department, and shall be accompanied by an application fee of one-half of 1 percent of the amount of the loan applied for, but in no case shall the application fee exceed five hundred dollars ($500). The fees shall be deposited by the department in the fund and used to defray the office’s expenditures in the administration of this chapter.
(Amended by Stats. 2021, Ch. 143, Sec. 243. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129092.

129092. Notwithstanding any other provision of law, upon the application of a borrower for insurance, the department shall perform a feasibility study relating to the proposed project, the cost of which shall be paid by the applicant. The department may retain independent consultants and require a deposit from the applicant for such services, upon submission of the application. This section shall take effect on January 1, 2001.
(Amended by Stats. 2021, Ch. 143, Sec. 244. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129095.

129095. (a)  The department shall not regulate, impose requirements on, or require approval by the department of a professional, or a fee charged by a professional, used by applicants for the initial application for loan insurance. The choice of any professional and the funding source used shall be left entirely to the participants.
(b)  For purposes of this section, “professional” includes, but is not limited to, an underwriter, bond counsel, or consultant.
(c)  Nothing in this section shall prohibit the department, in the event of defaults, from taking any action authorized under this chapter to protect the financial interest of the state.
(Amended by Stats. 2021, Ch. 143, Sec. 245. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129100.

129100. Every applicant for insurance shall be afforded an opportunity for a fair hearing before the committee upon 10 days’ written notice to the applicant. If the department, after affording reasonable opportunity for development and presentation of the application and after receiving the advice of the committee, finds that an application complies with the requirements of this article and of Section 129020 and is otherwise in conformity with the state plan, it may approve the application for insurance. The department shall consider and approve applications in the order of relative need set forth in the state plan in accordance with Section 129020. Judicial review of a final decision made under this section may be had by filing a petition for writ of mandate. Any petition shall be filed within 30 days after the date of the final decision of the department.
(Amended by Stats. 2021, Ch. 143, Sec. 246. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129105.

129105. The department may upon application of the borrower insure any loan that is eligible for insurance under this chapter, and upon the terms prescribed by the department, may make commitments for the insuring of the loans prior to their date of execution or disbursement thereon. The decision to grant loan insurance upon an application of the borrower is within the discretion of the director of the department. Showing need for the project or meeting the eligibility requirements for loan insurance and establishing financial feasibility of the project or recommendation for approval from the committee does not create any entitlement to loan insurance.
(Amended by Stats. 2021, Ch. 143, Sec. 247. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 2 - Insurable Loans and Applications Therefor › Section 129110.

129110. Any contract of insurance executed by the department under this chapter shall be conclusive evidence of the eligibility of the loan for insurance and the validity of any contract of insurance so executed shall be incontestable from the date of the execution of the contract, except in case of fraud or misrepresentation on the part of the lender.
(Amended by Stats. 2021, Ch. 143, Sec. 248. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129125.

129125. In any case when the lender under a loan to a nonprofit corporation insured under this chapter shall have foreclosed and taken possession of the property under a mortgage in accordance with regulations of, and within a period to be determined by the department, or shall, with the consent of the department, have otherwise acquired the property from the borrower after default, the lender shall be entitled to receive the benefit of the insurance as provided in this section, upon (a) the prompt conveyance to the office of title to the property that meets the requirements of the regulations of the department in force at the time the loan was insured, and that is evidenced in the manner prescribed by the regulations, and (b) the assignment to the department of all claims of the lender against the borrower or others arising out of the loan transaction or foreclosure proceedings except claims that may have been released with the consent of the department. Upon the conveyance and assignment, the department shall notify the Treasurer, who shall issue to the lender debentures having a total face value equal to the outstanding value of the loan.
For the purposes of this section, the outstanding value of the loan shall be determined, in accordance with the regulations prescribed by the department, by (a) adding to the amounts of the original principal obligation of the loan and interest that are accrued and unpaid the amount of all payments that have been made by the lender for the following: taxes and assessments, ground rents, water rates, and other liens that are prior to the mortgage; charges for the administration, operation, maintenance and repair of the health facility property; insurance on the project property, loan insurance premiums, and any tax imposed by a city or county upon any deed or other instrument by which the property was acquired by the lender and transferred or conveyed to the office; and the costs of foreclosure or of acquiring the property by other means actually paid by the lender and approved by the department; and by (b) deducting from the total amount any amounts received by the lender after the borrower’s default on account of the loans or as rent or other income from the property.
(Amended by Stats. 2021, Ch. 143, Sec. 249. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129130.

129130. In any case when a political subdivision defaults on the payment of interest or principal accrued and due on bonds or other evidences of indebtedness insured under this chapter, debentures in an amount equal to the outstanding original principal obligation and interest on the bonds that were accrued and unpaid on the date of default and bearing interest at a rate equal to and payment schedule identical with those of the bonds shall be issued by the Treasurer upon notification thereof by the department to the bondholders upon the surrender of the bonds to the department.
In any case in which a hospital district defaults on the payment of interest or principal accrued and due on an insured loan secured by a first mortgage, first deed of trust, or other security agreement as authorized by Section 32127.2, debentures in an amount equal to the outstanding original principal obligation and interest on the bonds that were accrued and unpaid on the date of default and bearing interest at a rate equal to and payment schedule identical with those of the bonds shall be issued by the Treasurer upon notification thereof by the department to the bondholders upon surrender of the bonds to the department after the state has enforced its rights under the first mortgage, first deed of trust, or other security agreement.
(Amended by Stats. 2021, Ch. 143, Sec. 250. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129135.

129135. Notwithstanding any requirement contained in this chapter relating to acquisition of title and possession of the project property by the lender and its subsequent conveyance and transfer to the department, and for the purpose of avoiding unnecessary conveyance expense in connection with payment of insurance benefits under the provisions of this chapter, the department may, subject to regulations that it may prescribe, permit the lender to tender to the department a satisfactory conveyance of title and transfer of possession direct from the borrower or other appropriate grantor and to pay to the lender the insurance benefits to which it would otherwise be entitled if the conveyance had been made to the lender and from the lender to the department.
(Amended by Stats. 2021, Ch. 143, Sec. 251. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129140.

129140. Upon receiving notice of the default of any loan insured under this chapter, the department, in its discretion and for the purpose of avoiding foreclosure under Section 129125 and notwithstanding the fact that it has previously approved a request of the lender for extensions of the time for curing the default and of the time for commencing foreclosure proceedings or for otherwise acquiring title to the project property, or has approved a modification of the loan for the purpose of changing the amortization provisions by recasting the unpaid balance, may acquire the loan and security agreements securing the loans upon the issuance to the lender of debentures in an amount equal to the unpaid principal balance of the loan plus any accrued unpaid loan interest plus reimbursement for the costs and attorney’s fees of the lender enumerated in Section 129125.
After the acquisition of the loan and security interests therefor by the department, the lender shall have no further rights, liabilities, or obligations with respect thereto. The provisions of Section 129125 relating to the issuance of debentures incident to the acquisition of foreclosed properties shall apply with respect to debentures issued under this section, and the provisions of this chapter relating to the rights, liabilities, and obligations of a lender shall apply with respect to the department when it has acquired an insured loan under this section, in accordance with and subject to any regulations prescribed by the department modifying the provisions to the extent necessary to render their application for these purposes appropriate and effective.
(Amended by Stats. 2021, Ch. 143, Sec. 252. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129145.

129145. Notwithstanding any other provision of this chapter, after the department determines that the lender and borrower have exhausted all reasonable means of curing any default, the department within its discretion may, when it is in the best interests of the state, the borrower, and the lender, cure the default of the borrower by making payment from the fund directly to the lender of any amounts of the original principal obligation and interest of the loan that are accrued and unpaid. The payment shall be secured by an assignment to the department of a pro rata share of the security agreements made to the lender and, upon the payment, the borrower shall become liable for repayment of the amount thereof to the office over a period and at a rate of interest as shall be determined by the department.
(Amended by Stats. 2021, Ch. 143, Sec. 253. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129150.

129150. The department may at any time, under the terms and conditions that it may prescribe, consent to the lender’s release of the borrower from its liability under the loan or the security agreement securing the loan, or consent to the release of parts of the project property from the lien of any security agreement.
(Amended by Stats. 2021, Ch. 143, Sec. 254. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129152.

129152. If a borrower fails to submit a required report, or upon any other default of any regulatory or contractual term or covenant, whether or not a default has been declared, the department first shall informally communicate with the borrower. If the borrower fails to submit the required report or otherwise cure the default, the department shall issue a formal demand in writing stating the nature of the default and requiring the borrower to submit a detailed plan of correction that is acceptable to the office. If the borrower fails to either submit a plan, or timely cure the default, the department shall perform an onsite visit. If the department determines the borrower is not making sufficient progress in submitting any required reports or otherwise curing any default, the department may require the borrower, at the borrower’s expense, to employ an independent consultant or professional, acceptable to the department, to conduct a program audit. If the borrower fails to adopt the recommendations of the independent consultant or professional made in the program audit, or if the borrower fails to otherwise timely cure the default, the department shall have all the remedies set forth in the Section 129173.
(Amended by Stats. 2021, Ch. 143, Sec. 255. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129155.

129155. Debentures issued under this chapter shall be in the form and denomination, subject to the terms and conditions, and include provisions for redemption, if any, as may be prescribed by the department with the approval of the Treasurer, and may be in coupon or registered form.
(Amended by Stats. 2021, Ch. 143, Sec. 256. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129160.

129160. (a)  (1) All debentures issued under this chapter to any lender or bondholder shall be executed in the name of the fund as obligor, shall be signed by the Treasurer, and shall be negotiable. Pursuant to Sections 129125 and 129130, all debentures shall be dated as of the date of the institution of foreclosure proceedings or as of the date of the acquisition of the property after default by other than foreclosure, or as of another date as the department, in its discretion, may establish.
(2) The debentures shall bear interest from that date at a rate equal to the insured loan or bonds, and shall be payable on a payment schedule identical with payments on the insured loan or bonds. The Treasurer shall take appropriate steps to the extent feasible to provide that interest on the debentures is exempt from federal income taxation under Section 103 of the Internal Revenue Code to the extent interest on the insured loan or bonds is exempt from federal income taxation under Section 103 of the Internal Revenue Code on the date the insured loan or bonds is exchanged for debentures. All debentures shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the state or local taxing agencies, shall be paid out of the fund, which shall be primarily liable therefor, and shall be, pursuant to Section 4 of Article XVI of the California Constitution, fully and unconditionally guaranteed as to principal and interest by the State of California, which guaranty shall be expressed on the face of the debentures.
(3) If the fund fails to pay upon demand, when due, the principal of, or interest on, any debentures issued under this chapter, the Treasurer shall pay to the holders the amount thereof, which amount, notwithstanding Section 13340 of the Government Code, is hereby continuously appropriated from the General Fund, without regard to fiscal years, and thereupon to the extent of the amount so paid the Treasurer shall succeed to all the rights of the holders of the debentures. The fund shall be liable for repayment to the General Fund of any money paid from the General Fund pursuant to this section in accordance with procedures jointly established by the Treasurer and the department.
(b)  Any debenture issued under this article shall be paid on a par with general obligation bonds issued by the state.
(Amended by Stats. 2021, Ch. 143, Sec. 257. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129165.

129165. Notwithstanding any other provision of law relating to the acquisition, management or disposal of real property by the state, the department shall have power to deal with, operate, complete, lease, rent, renovate, modernize, insure, or sell for cash or credit, in its discretion, any properties conveyed to it in exchange for debentures as provided in this chapter; and notwithstanding any other provision of law, the department shall also have power to pursue to final collection by way of compromise or otherwise all claims against borrowers assigned by lenders to the department as provided in this chapter. All income from the operation, rental, or lease of the property and all proceeds from the sale thereof shall be deposited in the fund and all costs incurred by the office in its exercise of powers granted in this section shall be met by the fund.
The power to convey and to execute in the name of the department deeds of conveyance, deeds of release, assignments and satisfactions of loans and mortgages, and any other written instrument relating to real or personal property or any interest therein acquired by the department pursuant to the provisions of this chapter may be exercised by the department or by any officer of the department appointed by it.
(Amended by Stats. 2021, Ch. 143, Sec. 258. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129170.

129170. No lender or borrower shall have any right or interest in any property conveyed to the department or in any claim assigned to it, nor shall the department owe any duty to any lender or borrower with respect to the management or disposal of this property.
(Amended by Stats. 2021, Ch. 143, Sec. 259. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129172.

129172. Notwithstanding any other provision of law, if, prior to foreclosing on any collateral provided by a borrower, the department institutes a judicial proceeding or takes any action against a borrower to enforce compliance with the obligations set out in the regulatory agreement, the contract of insurance, or any other contractual loan closing document or law, including, but not limited to, Section 129173, that remedy or action shall not constitute an action within the meaning of subdivision (a) of Section 726 of the Code of Civil Procedure, or in any way constitute a violation of the intent or purposes of Section 726 of the Code of Civil Procedure, or constitute a money judgment or a deficiency judgment within the meaning of Sections 580a, 580b, 580d, or subdivision (b) of Section 726 of the Code of Civil Procedure. However, these provisions of the Code of Civil Procedure shall apply to any judicial proceeding instituted, or nonjudicial foreclosure action taken by the department to collect the principal and interest due on the loan with the borrower.
(Amended by Stats. 2021, Ch. 143, Sec. 260. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129174.

129174. (a)  In the event a borrower has defaulted in making its payments on the loan insured by the department to the lender or the borrower’s bond trustee, at any time thereafter, the office may do any of the following:
(1)  Decease a portion or all of the bonds or may purchase a portion or all of the bonds at a private or public sale or on the open market. For this purpose, the department may use any funds available, including, but not limited to, funds in the Health Facility Construction Loan Insurance Fund, funds that the department may receive either from settlement or recoveries from lawsuits, funds from the sale of assets of the borrower, or funds held by the borrower’s bond trustee. If requested by the department, the Treasurer shall purchase the bonds on behalf of the office. Upon the purchase of any bonds under this section, the department shall direct the borrower’s bond trustee to cancel the bonds purchased.
(2)  Issue bonds used for the sole purpose of refunding any part or all of the defaulted bonds, provided that, in the opinion of the department, there are adequate present value savings to refund all or part of the defaulted bonds. If requested by the department, the Treasurer shall act as the issuer for this purpose.
(3)  Require the lender or borrower’s bond trustee to accelerate the borrower’s debt and the maturity dates of the bonds, if any. If the bond trustee accelerates the bond debt and maturity dates, the department shall pay from the fund to the lender or borrower’s bond trustee the full amount of the remaining principal of the loan, any interest accrued and unpaid on this amount, and any costs enumerated in Section 129125.
(b)  For the purposes of this section, “bonds” mean bonds, certificate of participation, notes, or other evidence of indebtedness of a loan insured by the department.
(Amended by Stats. 2021, Ch. 143, Sec. 262. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 3 - Defaults › Section 129174.1.

129174.1. In the event an obligor on a loan insured by the department is the subject of an order for relief in bankruptcy and that a plan has been proposed for confirmation, upon a certification by the department that the insurance is in place and would be in place if the plan were confirmed, then the department shall have the right to vote whether to accept or reject the plan on behalf of the holders of the loan insured by the department.
(Amended by Stats. 2021, Ch. 143, Sec. 263. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 4 - Termination of Insurance › Section 129175.

129175. Should a borrower be more than 10 days delinquent in paying the premium charges or inspection fees for insurance under this chapter, the department shall notify the borrower in writing. If that payment remains delinquent more than 30 days after the sending of the department’s notice to the borrower, the department shall make every reasonable effort to notify the lender in writing. If that delinquency continues, on the 31st day after sending of the department’s notice to the lender, the insurance shall be terminated and become null and void.
(Amended by Stats. 2021, Ch. 143, Sec. 264. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 4 - Termination of Insurance › Section 129180.

129180. The obligation to pay any subsequent premium charge for insurance shall cease, and all rights of the lender and the borrower under this chapter shall terminate as of the date of the notice, as herein provided, in the event that (a) any lender under a loan forecloses on the mortgaged property, or has otherwise acquired the project property from the borrower after default, but does not convey the property to the department in accordance with this chapter, and the department is given written notice thereof, or (b) the borrower pays the obligation under the loan in full prior to the maturity thereof, and the department is given written notice thereof.
(Amended by Stats. 2021, Ch. 143, Sec. 265. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 4 - Termination of Insurance › Section 129185.

129185. The department is authorized to terminate any insurance contract upon joint request by the borrower and the lender and upon payment of a termination charge that the department determines to be equitable, taking into consideration the necessity of protecting the fund. Upon the termination, borrowers and lenders shall be entitled to the rights, if any, that they would be entitled to under this chapter if the insurance contract were terminated by payment in full of the insured loan.
(Amended by Stats. 2021, Ch. 143, Sec. 266. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 5 - Health Facility Construction Loan Insurance Fund › Section 129200.

129200. There is hereby established a Health Facility Construction Loan Insurance Fund, that shall be used by the department as a revolving fund for carrying out the provisions and administrative costs of this chapter. Notwithstanding Section 13340 of the Government Code, the money in the fund is hereby continuously appropriated to the department without regard to fiscal years for the purposes of this chapter.
(Amended by Stats. 2021, Ch. 143, Sec. 267. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 5 - Health Facility Construction Loan Insurance Fund › Section 129205.

129205. Moneys in the fund not needed for the current operations of the department under this chapter shall be invested pursuant to law. The department may, with the approval of the State Treasurer, purchase the debentures issued under this chapter. Debentures so purchased shall be canceled and not reissued.
(Amended by Stats. 2021, Ch. 143, Sec. 268. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 5 - Health Facility Construction Loan Insurance Fund › Section 129210.

129210. (a)  The department’s authorization to insure health facility construction, improvement, and expansion loans under this chapter shall be limited to a total of not more than three billion dollars ($3,000,000,000).
(b)  Notwithstanding the limitation in subdivision (a), the department may exceed the specific dollar limitation in either of the following instances:
(1)  Refinancing a preexisting loan, if the refinancing results in savings to the health facility and increases the probability that a loan can be repaid.
(2)  The need for financing results from earthquakes or other natural disasters.
(Amended by Stats. 2021, Ch. 143, Sec. 269. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 5 - Health Facility Construction Loan Insurance Fund › Section 129215.

129215. The Health Facility Construction Loan Insurance Fund, established pursuant to Section 129200, shall be a trust fund and neither the fund nor the interest or other earnings generated by the fund shall be used for any purpose other than those purposes authorized by this chapter.
(Added by Stats. 1995, Ch. 415, Sec. 9. Effective January 1, 1996.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 5.5 - Advisory Loan Insurance Committee › Section 129220.

129220. The department shall establish an Advisory Loan Insurance Committee which shall be comprised of nine members, eight of whom shall be appointed by the director of the department. Of the nine members, seven shall be appointed from outside state government and two shall be appointed from inside state government. The Director of Finance shall appoint one of the members chosen from inside state government. The members of the committee shall be qualified in the field of financial analysis, management, operations, or construction, improvement, or expansion of health facilities. Those members appointed from outside state government shall be reimbursed one hundred dollars ($100) for each day spent in the performance of official duties. All members shall be reimbursed for reasonable and necessary expenses.
(Amended by Stats. 2021, Ch. 143, Sec. 270. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 5.5 - Advisory Loan Insurance Committee › Section 129221.

129221. The duties of the committee shall include, but not be limited to, the following:
(a)  The committee shall assist the director of the department in formulating policy concerning financial analysis, management, operation, or construction, improvement, or expansion of health facilities, and shall, at the request of the director of the department, provide overall policy advice, guidance, and recommendations. The committee shall also provide the department with advice and comment on the state plan prepared pursuant to Section 129020.
(b)  The committee shall also review and analyze the feasibility, level of financial risk, and community benefit assessments made by the department on applications submitted for approval. The committee shall recommend to the director whether an application should be approved and whether any conditions should be attached to that approval. Loans that are currently insured by the department and subsequently are refinanced to obtain a lower interest rate or emergency working capital loans insured pursuant to Section 129091 shall not require the review of the committee.
(Amended by Stats. 2021, Ch. 143, Sec. 271. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 6 - Community Mental Health Facilities Loan Insurance › Section 129225.

129225. This article shall be known as, and may be cited as, the Community Mental Health Facilities Loan Insurance Law.
(Added by Stats. 1995, Ch. 415, Sec. 9. Effective January 1, 1996.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 6 - Community Mental Health Facilities Loan Insurance › Section 129230.

129230. It is the intent of the Legislature in enacting this article to encourage the development of facilities for community-based programs that assist mental health clients living in any institutional setting, including state and local inpatient hospitals, skilled nursing homes, intermediate care facilities, and community care facilities to move to more independent living arrangements. It is further the intent of the Legislature to encourage local programs to seek funding for facility development from private sources and with the assistance provided pursuant to this chapter.
To achieve this purpose in determining eligibility for loan insurance pursuant to this chapter, the following special provisions apply to facilities approved in the local mental health program and meeting the intentions of this article:
(a) Facilities shall not require approval pursuant to Section 129295 by the statewide system of health facility planning, the area health planning agency, or the Health Advisory Council, for the issuance of loan insurance, unless specifically required for the facilities by the facility category of licensure.
(b) Notwithstanding subdivision (i) of Section 129050, any loan of under three hundred thousand dollars ($300,000) for a nonprofit corporation as well as a political subdivision may be fully insured equal to the total construction cost, except a loan to any proprietary corporation that is insured pursuant to subdivision (d) of this section.
(c) The local mental health program may provide all application fees, inspection fees, premiums and other administrative payments required by this chapter, except with respect to any loan to a proprietary corporation that is insured pursuant to subdivision (d) of this section.
(d) The borrower may be a proprietary corporation, provided that the facility is leased to the local mental health program for the duration of the insurance agreement. In these instances, all provisions in this chapter and this article that apply to a nonprofit corporation shall apply to the proprietary corporation, except as provided in subdivisions (b) and (c) of this section.
(e) For the purposes of this article, subdivision (c) of Section 129010 shall include the purchase of existing buildings.
(f) Facilities shall not require approval pursuant to Section 129020 by the statewide system of health facility planning, the area health planning agency, or the Health Advisory Council, for the issuance of loan insurance, until the director of the department determines that the state plan developed pursuant to Section 129020 adequately and comprehensively addresses the need for community mental health facilities and that finding is reported to the appropriate policy committees of the Legislature.
(Amended by Stats. 2021, Ch. 143, Sec. 272. (AB 133) Effective July 27, 2021.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 6 - Community Mental Health Facilities Loan Insurance › Section 129235.

129235. Loans of under three hundred thousand dollars ($300,000) for any single facility shall have priority for obtaining loan insurance under the special provisions established pursuant to Section 129230.
(Added by Stats. 1995, Ch. 415, Sec. 9. Effective January 1, 1996.)
2023 California Code › Health and Safety Code - HSC › DIVISION 107 - HEALTH CARE ACCESS AND INFORMATION › PART 6 - FACILITIES LOAN INSURANCE AND FINANCING › CHAPTER 1 - Health Facility Construction Loan Insurance › ARTICLE 6 - Community Mental Health Facilities Loan Insurance › Section 129240.

129240. The total amount of loans that may be insured pursuant to this article shall not exceed fifteen million dollars ($15,000,000).
(Added by Stats. 1995, Ch. 415, Sec. 9. Effective January 1, 1996.)