California Code of Regulations › Title 4 - Business Regulations › Division 15 - California School Finance Authority › Article 1 - Charter School Facilities Program › Section 10157 - Succession and Security Provisions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				Pursuant to Education Code, Section
				17078.62(b)(3),
				the school district in which the Charter School is physically located may take
				possession and title of the facility only after having demonstrated due
				diligence in soliciting alternative Charter Schools within the local area to
				take possession and title of the facility, as permitted by Education Code
				Section
				17078.62(b)(2).
				Such demonstration of due diligence shall be at the Authority's discretion, but
				shall include, but not be limited to, documentary evidence of solicitation of
				Charter Schools within the district boundaries, where applicable.
(b) Title to project facilities may be held
				by the school district in whose boundaries the facility is to be physically
				located, in trust, for the benefit of the state public school system.
(c) Title to project facilities may be held
				by a Charter School or a local governmental entity other than the school
				district in accordance with Sections
				17078.57,
				17078.62,
				and
				17078.63 of
				the Education Code.
(d) Any person
				or entity providing a substantial contribution that is applied to the costs of
				the project in excess of the state share and the local matching share may be
				granted a security interest to be satisfied from the proceeds, if any, realized
				when the property is ultimately disposed of. If the contribution was made for
				the explicit purpose of purchasing any asset with a normal life expectancy of
				less than twenty years, the security interest will be adjusted to reflect the
				depreciation of the asset(s).
(e)
				Any person or entity that provides a contribution to the Applicant which is
				used solely to assist the Applicant in meeting its Local Matching Share shall
				not be entitled to a security interest as provided in subsection (b). Where the
				contribution results in total Project funding beyond the State share and Local
				Matching Share, the contributor's security interest shall be limited to the
				amount in excess of the State share and Local Matching Share.
(f) If a default occurs and all Matching
				Share Payments have not been made, the security interest of any person or
				entity providing a substantial contribution to the costs of the Project shall
				be satisfied only after the account is reimbursed for any remaining unpaid
				local matching share.
(g) Specific
				terms of security provisions for persons or entities providing a substantial
				contribution shall be determined on a case-by-case basis.
(h) Prior to the release of funds, the
				Applicant shall submit evidence of a separate and distinct account for deposits
				of all Program loan proceeds.
1. New section
				  filed 2-13-2003 as an emergency; operative 2-13-2003 (Register 2003, No. 7). A
				  Certificate of Compliance must be transmitted to OAL by 6-13-2003 or emergency
				  language will be repealed by operation of law on the following
				  day.
2. Certificate of Compliance as to 2-13-2003 order transmitted
				  to OAL 6-12-2003 and filed 7-14-2003 (Register 2003, No. 29).
3.
				  Renumbering of former section
				  10157 to section
				  10158 and new section
				  10157 filed 3-29-2004 as an
				  emergency pursuant to Education Code section
				  17078.57(b);
				  operative 3-29-2004 (Register 2004, No. 14). A Certificate of Compliance must
				  be transmitted to OAL by 7-27-2004 or emergency language will be repealed by
				  operation of law on the following day.
4. Renumbering of former
				  section 10157 to section
				  10158 and new section
				  10157 refiled 7-19-2004 as an
				  emergency pursuant to Education Code section
				  17078.57(b);
				  operative 7-27-2004 (Register 2004, No. 30). A Certificate of Compliance must
				  be transmitted to OAL by 11-24-2004 or emergency language will be repealed by
				  operation of law on the following day.
5. Certificate of Compliance
				  as to 7-19-2004 order transmitted to OAL 11-8-2004 filed 12-23-2004 (Register
				  2004, No. 52).
6. Amendment of subsection (a)(4), new subsection
				  (a)(5) and amendment of subsection (b) filed 9-9-2010 as an emergency;
				  operative 9-9-2010 (Register 2010, No. 37). A Certificate of Compliance must be
				  transmitted to OAL by 3-8-2011 or emergency language will be repealed by
				  operation of law on the following day.
9. Certificate of Compliance
				  as to 9-9-2010 order transmitted to OAL 1-19-2011 and filed 2-16-2011 (Register
				  2011, No. 7).
10. Renumbering of former section
				  10157 to section
				  10156 and renumbering and amendment
				  of former section
				  10159 to section
				  10157 filed 11-3-2011 as an
				  emergency; operative 11-3-2011 (Register 2011, No. 44). A Certificate of
				  Compliance must be transmitted to OAL by 5-1-2012 or emergency language will be
				  repealed by operation of law on the following day.
11. Certificate
				  of Compliance as to 11-3-2011 order transmitted to OAL 2-7-2012 and filed
				  3-5-2012 (Register 2012, No. 10).
12. Repealer of former section
				  10157 and renumbering of former
				  section 10159 to new section
				  10157, including amendment of
				  section heading and section, filed 7-3-2018; operative 10-1-2018 (Register
				  2018, No. 27).
Note: Authority cited: Section
					 17078.57,
					 Education Code. Reference: Section
					 17078.57,
					 Education Code.