California Code of Regulations › Title 10 - Investment › Chapter 6.51 - Business, Transportation and Housing Agency: Emergency Small Business and Farm Enterprise Guarantees › Article 1 - General Provisions › Section 4011 - Guarantee Procedures

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The potential borrower applying for a Guarantee shall provide
				  a copy of the Application, together with any other information required by
				  these regulations, to the Corporation for processing in accordance with the
				  following procedures:
(a) No Guarantee
				shall be executed by a Corporation until the proposed guarantee has been
				reviewed by the Corporation's loan committee, approved by its board of
				directors and the Corporation receives a Lender Certification.
(b) Upon completion of the review and
				approval specified in subsection (a), the Corporation shall issue a commitment
				to guarantee and an executed Guarantee to the Lender.
(c) In the event that a Guarantee is issued
				to the Lender without first complying with the requirements of subsection (a),
				and the Lender relies upon the Guarantee in making the Loan, the failure by the
				Corporation to so comply shall not constitute a defense on the part of either
				the Agency or Corporation to paying a Demand for payment made pursuant to
				section 4013.
(d) In any case where funds are disbursed to
				a Lender pursuant to a Demand and the Corporation has failed to comply with
				subsection (a), the Agency shall immediately exercise all available legal
				remedies to recover from the Corporation the funds disbursed pursuant to the
				Demand.
1. New section
				  filed 12-8-89 as an emergency; operative 12-8-89 (Register 89, No. 52). A
				  Certificate of Compliance must be transmitted to OAL within 120 days or
				  emergency language will be repealed on 4-9-90.
2. Amendment of
				  subsections filed 12-22-89 as an emergency; operative 12-22-89 (Register 89,
				  No. 52). A Certificate of Compliance must be transmitted to OAL within 120 days
				  or emergency language will be repealed by operation of law on
				  4-23-90.
3. Certificate of Compliance as to 12-8-89 and 12-22-89
				  orders including nonsubstantive amendments transmitted to OAL 4-6-90 and filed
				  5-7-90 (Register 90, No. 25).
4. Amendment filed 3-22-91 as an
				  emergency; operative 3-22-91 (Register 91, No. 16). A Certificate of Compliance
				  must be transmitted to OAL by 7-22-91 or emergency language will be repealed by
				  operation of law on the following day.
5. Repealer and new section
				  filed 3-19-92 as an emergency; operative 3-19-92 (Register 92, No. 15). A
				  Certificate of Compliance must be transmitted to OAL 7-17-92 or emergency
				  language will be repealed by operation of law on the following
				  day.
6. Renumbering of former section
				  4011 to section
				  4611 and new section
				  4011 filed 6-2-92; operative
				  6-2-92 (Register 92, No. 24).
7. Amendment of subsections (c) and
				  (d) 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.
8. Editorial correction of
				  HISTORY 7 (Register 2005, No. 27).
9. 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).
Note: Authority cited: Section
					 14075
					 (b), Corporations Code. Reference: Section
					 14075
					 (a), Corporations Code and Section
					 8684.2,
					 Government Code.