California Code of Regulations › Title 4 - Business Regulations › Division 11 - California Pollution Control Financing Authority › Article 7 - Capital Access Program for Small Businesses › Section 8078.33 - Claim for Reimbursement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Upon
				the default of an enrolled loan, the Participating Financial Institution must
				submit a written Default Notification, or prior to the expiration of the Term
				of Support.
(b) For a loan in
				default, the Participating Financial Institution shall provide in each
				Quarterly Report a short report of the status of the loan, including a short
				narrative of the loan collection history, and the status of the attempt to work
				out the default including the sale of proceeds or attempts to liquidate
				collateral.
(c) If the default or
				delinquency affecting the Qualifying Loan is subsequently resolved through a
				Change in Terms, settlement or other workout which avoids charge-off and
				collateral liquidation of the loan, the Participating Financial Institution
				shall promptly withdraw the Default Notification.
(d) Within thirty (30) calendar days
				following charge-off and collateral liquidation, whichever is later, the lender
				will submit a written claim for Collateral Support Payment, including: a
				history of the account payments, the date of charge-off, the complete loan
				collection history, any attempts to work out the default prior to charge off,
				the sale of proceeds, and the success of attempts to liquidate collateral and
				guarantees pledged at closing in advance of the Collateral Support.
(e) The Collateral Support shall not be
				claimed by a Participating Financial Institution in lieu of pursuing and
				liquidating pledged collateral. All pledged collateral must be liquidated
				consistent with the participating financial institution's usual method for
				loans not enrolled in the Collateral Support Program.
(f) After liquidation of all pledged
				collateral for a charged-off loan, a Participating Financial Institution may be
				reimbursed for: the amount of loan principal charged-off net liquidated
				collateral; reasonable out-of-pocket expenses incurred in pursuing its
				collection efforts, including the preservation of collateral, and other related
				costs; and accrued and unpaid interest. Proper documentation of any claimed
				expenses shall be presented at the time of the claim. The amount paid on a
				claim will never exceed the present amount in the Collateral Support Loss
				Reserve account.
(g) If, in the
				attempt to work out a default or charge-off, a Participating Financial
				Institution seeks to have an amended or new loan or debt structure with the
				Borrower covered by Collateral Support, the Participating Financial Institution
				shall submit a Collateral Support Program Request pursuant to Section
				8078.31 and the Authority shall
				review it as a new loan or Refinance subject to all Program requirements,
				including fees if applicable.
Note: Authority cited: Sections 44520 and 44559.5(f),
					 Health and Safety Code. Reference: Section 44559.5, Health and Safety
					 Code.
Note: Authority cited: Sections
					 44520
					 and
					 44559.5(f),
					 Health and Safety Code. Reference: Section
					 44559.5,
					 Health and Safety Code.