California Code of Regulations › Title 4 - Business Regulations › Division 11 - California Pollution Control Financing Authority › Article 7 - Capital Access Program for Small Businesses › Section 8074 - Claim for Reimbursement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A
				Participating Financial Institution shall notify the Authority within 120 days
				after it has charged off all or part of a Qualified Loan as a result of a
				default.
(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 to realization on personal or other financial guarantees or
				from other sources. A Participating Financial Institution may also defer, for a
				period not to exceed 180 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 120 days.
(c) The Authority shall pay claims within 30
				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 certifications, representations and warranties provided by the
				Participating Financial Institution or Borrower pursuant to Section
				8072 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 30 days if the Authority requires more information
				in order to determine if the claim shall be paid. The Authority may request and
				the lender shall provide, any and all information from the Borrower's loan file
				to substantiate the eligibility of the Borrower's business and the enrolled
				loan, and the reasonableness of the costs claimed.
(d) Claim reimbursement shall not exceed the
				enrolled amount of the qualified loan or loans that form 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 interest and
				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 form to
				the Authority which shall include the following information:
(1) Name and number of the Participating
				Financial Institution.
(2) Name,
				address and telephone number of contact person.
(3) Name of the business receiving the
				defaulted Qualified Loan.
(4)
				Amount and date of the Qualified Loan and the Authority's loan
				number.
(5) Date and amount of
				default.
(6) A description of the
				facts and circumstances of the default, efforts to settle or cure the default,
				efforts to liquidate collateral or collect from other sources, and any other
				narrative information and documentation necessary to demonstrate that the claim
				is eligible under Health and Safety Code Section
				44559.5,
				and that any out-of-pocket expenses sought are reasonable.
(7) Amount of claim and breakdown of
				components of the claim between principal, interest, and reasonable
				out-of-pocket expenses of collection or preservation of collateral, accompanied
				by documentation of such expenses.
(8) Certification that notice was filed with
				the Authority as required by Section
				8074(a) above
				within 120 days of the date the Participating Financial Institution charged the
				Qualified Loan off on its books, 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.
(9)
				Statement whether the loan is secured, and whether the Participating Financial
				Institution has commenced enforcement proceedings.
(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) Statement whether the Qualified Loan
				qualifies under Section
				8074(g).