California Code of Regulations › Title 10 - Investment › Chapter 7 - Business, Transportation and Housing Agency: Small Business Loans and Guarantees › Article 2.5 - ILOC as Bond Collateral › Section 5013 - ILOC Procedures

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A Principal shall be authorized to apply to a Corporation for
				  an ILOC. A Principal applying for an ILOC shall provide a completed Application
				  to the Corporation for review and processing in accordance with the following
				  procedures:
(a) The proposed ILOC has
				been reviewed by the Corporation's Bond loan committee and approved by its
				board of directors.
(b) Upon
				compliance with subsection (a), the Corporation shall issue an ILOC commitment
				and an executed ILOC to the Surety.
(c) In the event that an ILOC is issued to a
				Surety without first complying with the requirements of subsection (a) and/or
				(e), and the Surety relies upon the ILOC in issuing the Bond, the failure by
				the Corporation to so comply shall not constitute a defense on the part of
				either the Agency or the Corporation to paying a Demand.
(d) In any case where funds are disbursed to
				a Surety pursuant to a Demand and the Corporation has failed to comply with
				subsections (a) and/or (e), the Agency shall immediately exercise all available
				legal remedies to recover from the Corporation the funds disbursed pursuant to
				the Demand.
(e) Any change to a
				Bond Guarantee or Bond Line pursuant to section
				5014(f)(3) must
				be approved by the Corporation board of directors if the change amends the
				terms contained in the resolution by the Corporation board of directors
				approving the Guarantee.
1. New article
				  2.5 and section filed 2-15-94 as an emergency; operative 2-15-94 (Register 94,
				  No. 7). A Certificate of Compliance must be transmitted to OAL by 6-15-94 or
				  emergency language will be repealed by operation of law on the following
				  day.
2. Repealed by operation of Government Code section
				  11346.1(g)
				  (Register 95, No. 7).
3. New article 2.5 and section filed 4-17-95
				  as an emergency; operative 4-17-95 (Register 95, No. 16). A Certificate of
				  Compliance must be transmitted to OAL by 8-15-95 or emergency language will be
				  repealed by operation of law on the following day.
4. Certificate of
				  Compliance as to 4-17-95 order transmitted to OAL 6-12-95 and filed 7-25-95
				  (Register 95, No. 30).
5. Amendment of subsections (c)-(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.
6. Editorial correction of
				  HISTORY 5 (Register 2005, No. 27).
7. Certificate of Compliance as
				  to 12-27-2004 order, including amendment of subsection (e) and NOTE,
				  transmitted to OAL 5-25-2005 and filed 7-7-2005 (Register 2005, No.
				  27).
Note: Authority cited: Section
					 14024,
					 Corporations Code. Reference: Sections
					 14002,
					 14055,
					 14059,
					 14060,
					 14064,
					 14071
					 and
					 14071.5,
					 Corporations Code.