California Code of Regulations › Title 10 - Investment › Chapter 7 - Business, Transportation and Housing Agency: Small Business Loans and Guarantees › Article 9 - Farm Loans › Section 5117 - Payments

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Payments
				received from repayment of a Farm Borrower Loan shall be allocated to Farm
				Lender, trust fund account and, if applicable Holder, based upon the percentage
				ownership of the Farm Borrower Loan. Therefore, if the Holder owns 90% and the
				trust fund account owns the remaining 10%, then the principal and interest
				payments are divided 
				90/10, except
				that the portion of the interest owed the trust fund account shall be based
				upon the Farm Lender Credit Agreement interest rate (two points below prime)
				and not the Farm Borrower Agreement (three points above prime). Payment shall
				be received by the trust fund account and if applicable Holder within
				forty-five (45) days of the Farm Lender receiving the funds from Farm
				Borrower.
(b) The Agency shall
				periodically audit Farm Lender's calculation of interest and principal owed
				under Farm Lender Credit Agreement, and send written notice to Farm Lender
				specifying any error in the calculation, and the amount of the discrepancy. If
				the letter specifies that Farm Lender owes additional funds, Farm Lender shall
				pay funds to the appropriate trust fund account within seven days of receiving
				the letter from the Agency. If the letter specifies that Farm Lender paid more
				than was owed, Farm Lender shall apply the overpayment to the next payment due
				to the Agency.
(c) Any sum
				disbursed to the Farm Lender pursuant to section
				5111 and not lent to Farm Borrower
				within six (6) months from the date of such disbursement shall be repaid by
				Farm Lender within five (5) working days of notification by the Agency, and the
				Farm Lender shall have no further rights with respect to such funds.
1. Repealer
				  and new section filed 2-1-94 as an emergency; operative 2-1-94 (Register 94,
				  No. 5). A Certificate of Compliance must be transmitted to OAL by 8-1-94
				  pursuant to Corporations Code section
				  14024 or
				  emergency language will be repealed by operation of law on the following day.
				  For prior history, see Register 89, No. 8.
2. Amendment filed
				  12-27-2004 as a deemed emergency pursuant to Corporations Code section
				  14024;
				  operative 12-27-2004 (Register 2004, No. 53). A Certificate of Compliance must
				  be transmitted to OAL by 6-27-2005 or emergency language will be repealed by
				  operation of law on the following day.
3. Editorial correction of
				  HISTORY 2 (Register 2005, No. 27).
4. Certificate of Compliance as
				  to 12-27-2004 order, including amendment of NOTE, transmitted to OAL 5-25-2005
				  and filed 7-7-2005 (Register 2005, No. 27).
5. Amendment filed
				  8-4-2008 as an emergency; operative 8-4-2008 (Register 2008, No. 32). A
				  Certificate of Compliance must be transmitted to OAL by 2-2-2009 or emergency
				  language will be repealed by operation of law on the following
				  day.
6. Certificate of Compliance as to 8-4-2008 order transmitted
				  to OAL 1-26-2009 and filed 2-19-2009 (Register 2009, No.
				  8).
Note: Authority cited: Section
					 14024,
					 Corporations Code. Reference: Sections
					 14067
					 and
					 14070,
					 Corporations Code.