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 10056 - Claim for Reimbursement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A
				Participating Financial Institution shall notify the Authority within sixty
				(60) calendar days after it has charged off all or part of a Qualified Loan as
				a result of a default by the Borrower.
(b) A Participating Financial Institution
				shall be authorized to make a claim for reimbursement of a loss from the
				enrolled portion of a Qualified Loan prior to the liquidation of collateral, or
				realization on personal or other financial guarantees or from other sources. A
				Participating Financial Institution may also defer, for a period not to exceed
				one hundred eighty (180) calendar days from the date of the charge-off, at its
				sole discretion, making a claim for reimbursement, but still must inform the
				Authority of charge-off status within sixty (60) calendar days.
(c) The Authority shall pay claims within
				thirty (30) calendar days of receipt of a completed claim request; provided,
				however, that the Executive Director shall be authorized to reject a claim if
				it is determined that the representations and warranties provided by the
				Participating Financial Institution pursuant to Section
				10054 at the time of enrolling the
				Qualified Loan were false. The Authority shall be authorized, upon providing
				written notice to the Participating Financial Institution, to defer payment of
				claims up to an additional thirty (30) calendar days if the Authority requires
				more information in order to determine if the claim shall be paid.
(d) Claim reimbursement from all sources
				shall not exceed the enrolled amount of the Qualified Loan that forms the basis
				for the claim, except when reasonable out-of-pocket expenses are claimed. In
				the event only a portion of the loan was enrolled, reimbursement of
				out-of-pocket expenses will be limited to the ratio of the enrolled portion to
				the total loan amount.
(e) To make
				a claim, the Participating Financial Institution shall submit a claim
				application to the Authority which shall include the following information:
(1) Name and identification number of the
				Participating Financial Institution.
(2) Name, address, telephone number and email
				address of contact person.
(3)
				Participating Financial Institution loan identification number of the Qualified
				Loan that is subject of the claim.
(4) Loan enrollment number.
(5) Original principal amount and enrollment
				date of the Qualified Loan.
(6)
				Amount of chargeoff.
(7) Date of
				chargeoff.
(8) Statement whether
				the loan is secured, and whether the Participating Financial Institution has
				commenced enforcement proceedings.
(9) Amount of claim and breakdown of
				components of the claim between outstanding principal, accrued interest and
				reasonable out-of-pocket expenses of collection or preservation of collateral,
				accompanied by documentation of such expenses.
(10) If two or more claims are filed
				simultaneously by one Participating Financial Institution, a statement of the
				priority of payment of the claim compared to the other claims in the event the
				Loss Reserve Account is not sufficient to pay all claims.
(11) Certification that notice was filed with
				the Authority as required by this section, and certification that such charge
				off was made in a manner consistent with the Participating Financial
				Institution's usual methods for taking action on loans which are not enrolled
				as Qualified Loans under the Program.
(12) Statement regarding claims made
				concerning the Qualified Loan with other government programs substantially
				similar to the Program--including but not limited to loan loss reserve or loan
				guarantee programs--including amounts of reimbursements anticipated or
				received. If no such claim is being made, the statement shall explain why and
				include an agreement by the Participating Financial Institution that no claim
				will be made or in the event a claim is made that some or all of any
				reimbursement received shall be paid to the Authority in an amount necessary to
				ensure that the Participating Financial Institution does not receive more than
				the amount allowed pursuant to subdivision (d).
(13) The claim application shall be signed by
				a person authorized to bind the Participating Financial Institution, and shall
				include the signatory's printed name, title and date.