California Code of Regulations › Title 4 - Business Regulations › Division 11 - California Pollution Control Financing Authority › Article 7 - Capital Access Program for Small Businesses › Section 8070 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In addition to the definitions in Section
				  8020, the following terms shall
				  have the following definitions, unless the context requires otherwise:
(a) "Borrower" means a Qualified Business
				which obtains a Qualified Loan from a Participating Financial
				Institution.
(b) "CalCAP" means
				California Capital Access Program.
(c) "Change in Terms" means any change in
				material terms of an enrolled loan, including changes to the name(s) of the
				borrower or co-borrowers, the total loan amount, the maturity date, or the
				interest rate.
(d) "Contribution"
				means any or all eligible funds deposited by the Authority or Independent
				Contributor to a Loss Reserve Account.
(e) "Executive Director" means the Executive
				Director of the California Pollution Control Financing Authority, or his or her
				designee from time to time.
(f)
				"Fees" or "Fee" means a non-refundable fees or fee as set forth in Health and
				Safety Code Section
				44559.4(c).
(g) "Financial Institution" means an
				institution as set forth in Health and Safety Code Section
				44559.1(d).
				Financial Institution also includes microbusiness lenders, as defined in
				Section
				13997.2 of
				the Government Code that make small business loans and require a minimum of
				four hours of preloan business technical and/or credit assistance to borrowers
				and a minimum of two hours of postloan assistance each year, and are subject to
				an audit requirement by its Federal or State regulated funding
				source.
(h) "Independent
				Contributor" means any individual, company, corporation, institution,
				foundation, utility, government agency or other entity, including any
				consortium of these persons or entities, whether public or private (but
				excluding any Borrower), that, pursuant to the provisions of this Article,
				deposits Contributions to a Loss Reserve Account.
(i) "Individual" means a natural person,
				together, if applicable, with any of his or her spouse, parents, siblings or
				children or the parents or spouse of any of them.
(j) "Law" means Article 8 (commencing with
				Section 44559) of Chapter 1 of Division 27
				of the California Health and Safety Code, as amended from time to
				time.
(k) "Loss Reserve Account"
				means an account held by a Program Trustee or by any Participating Financial
				Institution that is established and maintained by the Authority for the benefit
				of a Participating Financial Institution for the purposes set forth in Sections
				8073,
				8078.6,
				8078.11,
				8078.18, and
				8078.25.
(l) "Money Market Fund" means an open-ended
				management investment company regulated under the Investment Company Act of
				1940, as amended, which values its securities pursuant to Section
				270.2 a-7 of Title 17 of the Code
				of Federal Regulations.
(m)
				"Participating Financial Institution" means a Financial Institution that has
				been approved by the Authority to enroll Qualified Loans in the Program and has
				agreed to all terms and conditions set forth in the Law and this Article and as
				may be required by any applicable federal law providing matching
				funding.
(n) "Passive Real Estate
				Ownership" means ownership of real estate for the purpose of deriving income
				from speculation, trade or rental, but does not include any of the following:
(1) The ownership of that portion of real
				estate being used or intended to be used for the operation of the business of
				the owner of the real estate; or
(2) The ownership of real estate for the
				purpose of construction or renovation, until the completion of the construction
				or renovation phase.
For purposes of clause (1) above, the Borrower must be using
				  or planning to use upon acquisition or construction of a building, at least 51
				  percent of the space in an existing building or at least 67 percent of the
				  space in a newly constructed building. The requirements of clause (1) above
				  will be deemed to be satisfied when a Participating Financial Institution makes
				  a Qualified Loan to an Individual, or to a partnership or trust wholly owned or
				  controlled by one or more Individuals, for the purpose of financing property
				  that will be leased to a Qualified Business that is wholly owned by those same
				  Individuals, and in such case the Qualified Loan will be deemed to be made also
				  to such Qualified Business.