California Code of Regulations › Title 22 - Social Security › Division 4.5 - Environmental Health Standards for the Management of Hazardous Waste › Chapter 47 - Loan Programs › Article 1 - Cleanup Loans and Environmental Assistance to Neighborhoods Revolving Loan Fund › Section 68210 - Loan Agreement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  The Department and Applicant shall execute a Loan Agreement upon final approval
				  of the Loan Application and before fund disbursement;
(b) Each Loan Agreement shall include, at a
				  minimum, the following:
(1) The amount of the
				  Loan;
(2) Payment and prepayment
				  information;
(3) The interest rate
				  and default rate of the Loan as specified in section
				  68203;
(4) The terms of repayment as specified in
				  subdivision (e);
(5) For a CLEAN
				  Loan Program Loan, a description of the Eligible Property securing the Loan or
				  alternative form of security approved by the Department;
(6) Verification that an ISCP Environmental
				  Oversight Agreement or a CLEAN Loan Program Response Action Agreement or other
				  enforceable agreement with the State Board or a Regional Board, as appropriate,
				  has been fully executed in accordance with section
				  68211 before fund
				  disbursement;
(7) For a CLEAN Loan
				  Program Loan, agreement regarding completion of Response Actions in accordance
				  with subdivision (f);
(8) For an
				  ISCP Loan, agreement that the Borrower shall provide any and all PEA results to
				  the Department;
(9) Timeframes for
				  complying with the conditions of the Loan Agreement and any special conditions
				  that must be satisfied prior to, or covenants that must be complied with after,
				  the disbursement of funds;
(10)
				  Provision that any remaining unpaid amount of the Loan, with accrued interest,
				  shall be immediately due and payable upon determination by the Department that:
(A) There has been a default, including that
				  the Borrower has failed to comply with the Loan Agreement or other condition of
				  default;
(B) Any information
				  provided by the Borrower is found to be untrue. The Department may agree to a
				  schedule for repayment under this paragraph (10);
(11) Provision that the Borrower agrees to
				  waive any claims against, and to indemnify and hold harmless, the State of
				  California, including the Department, the State Board or a Regional Board, from
				  and against any and all claims, costs, and expenses stemming from Operation and
				  Maintenance or environmental degradation at the Property;
(12) Proof of adequate liability insurance
				  for the Borrower, including coverage for personal injury and property damage,
				  naming the Department as loss payee, and when appropriate, naming the
				  Department as additional insured, up to the amount of the Loan;
(13) Proof of secured creditor insurance as
				  required under subdivision (c) of section
				  25395.25
				  of the Health and Safety Code;
(14)
				  Provision that if the Borrower is not the owner of the Property, but intends to
				  purchase the Property before the Loan is satisfied, the purchase price of the
				  Property shall not exceed its estimated current fair market value, which is
				  based on the estimated value of the Property in a cleaned up state, not taking
				  into consideration any necessary Response Action that may be conducted on the
				  Property;
(15) For a CLEAN Loan
				  Program Loan, provision that the Loan is secured by the Property, or is secured
				  by an alternative form of security approved by the Department, and in
				  accordance with the provisions of section
				  25395.26
				  of the Health and Safety Code;
(16)
				  Provision that if the Borrower recovers from a responsible party any costs
				  incurred in taking a Response Action at the Property, any money so recovered
				  shall be used first to repay the ISCP and CLEAN Loan Program Loans and to repay
				  monies waived under subdivision (c) of section
				  68204. A Borrower is not required
				  to first use the money recovered to repay the Loan if the Borrower can
				  demonstrate to the satisfaction of the Department that the recovered money is
				  necessary to, and is being applied to, the total environmental remediation of
				  the Property, and that the total of the recovered money and the Loan amount
				  does not exceed the cost of remediation;
(17) Identification of the Property owner and
				  any options to purchase the Property held by any party;
(18) For a CLEAN Loan Program Loan, if the
				  Borrower uses Loan funds to pay the premium for environmental insurance
				  products approved by the Department to facilitate development of the site,
				  provision describing the type and limits of insurance coverage and
				  demonstration that the insurance products meet the requirements of subdivision
				  (a) of section
				  25395.22
				  of the Health and Safety Code;
(19)
				  Provision that the Loan shall not be used to pay Ineligible Costs;
				  and
(20) Any other provision to
				  which the parties agree.