California Code of Regulations › Title 4 - Business Regulations › Division 13 - California Alternative Energy and Advanced Transportation Financing Authority › Article 3 - Clean Energy Upgrade Financing Program › Section 10058 - Subrogation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				Authority will be subrogated to the rights of the Participating Financial
				Institution in collateral, personal guarantees and all other forms of security
				for the Qualified Loan including reimbursement claims that may be made with
				other government programs substantially similar to the Program including, but
				not limited to, other loan loss reserve or loan guarantee programs that have
				not been realized by the Participating Financial Institution, when the
				Participating Financial Institution's loss has been fully covered by payment of
				a loss claim, or by a combination of payment of a loss claim and recovery from
				the Borrower, liquidation of collateral, or from other sources.
(b) At the time of subrogating its rights,
				the Participating Financial Institution shall provide the Authority with all
				original security agreements, any documents evidencing title to real property,
				certificates of title, guarantees, and any other documents representing
				security for the Qualified Loan, duly recorded and perfected, and accompanied
				by enforceable assignments and conveyances to the Authority, unless such
				security documents also secure indebtedness to the Participating Financial
				Institution which was not covered by the Qualified Loan. In such latter case,
				the Participating Financial Institution shall enter into an intercreditor
				agreement with the Authority, providing that the Participating Financial
				Institution shall be entitled to recover under such security documents, to the
				extent possible, the full amount of its loss on any indebtedness not covered by
				the Qualified Loan but secured by the same collateral as the Qualified Loan;
				the balance of any amounts recovered under such security documents shall be
				deposited in the Loss Reserve Account. The Participating Financial Institution
				shall provide monthly reports, and as requested by the Executive Director,
				concerning its activities in collecting moneys owed from a defaulted
				Borrower.
(c) The Executive
				Director shall be authorized to enter into agreements with any Participating
				Financial Institution to provide for such institution to act as the Authority's
				agent to secure recovery under any agreement, collateral or security documents
				to which the Authority has been subrogated.
1. New section
				  filed 5-4-2012 as an emergency; operative 5-4-2012 (Register 2012, No. 18).
				  Pursuant to Public Resources Code section
				  26131,
				  this is a deemed emergency. A Certificate of Compliance must be transmitted to
				  OAL by 10-31-2012 or emergency language will be repealed by operation of law on
				  the following day.
2. New section refiled 10-29-2012 as an
				  emergency; operative 10-29-2012 (Register 2012, No. 44). Pursuant to Public
				  Resources Code section
				  26131,
				  this is a deemed emergency. A Certificate of Compliance must be transmitted to
				  OAL by 1-28-2013 or emergency language will be repealed by operation of law on
				  the following day.
3. New section refiled 1-28-2013 as an emergency,
				  with additional amendments to NOTE; operative 1-28-2013 (Register 2013, No. 5).
				  Pursuant to Public Resources Code section
				  26131,
				  this is a deemed emergency. A Certificate of Compliance must be transmitted to
				  OAL by 4-29-2013 or emergency language will be repealed by operation of law on
				  the following day.
4. Certificate of Compliance as to 1-28-2013
				  order transmitted to OAL 4-23-2013 and filed 5-22-2013 (Register 2013, No.
				  21).
Note: Authority cited: Section
					 26071,
					 Public Resources Code. Reference: Sections
					 26073
					 and
					 26074,
					 Public Resources Code.