§ 8052. Loan Terms.

The terms and conditions of a Loan shall include all of the following:

(a) An interest rate not to exceed one percent (1%) greater than the net interest cost on the Bonds issued in connection with a Loan, or if no bonds are so issued, not to exceed five percent (5%) greater than the interest rate payable at the time of a Loan on moneys in the state's surplus money investment fund. As used in this subsection, “net interest cost” is determined by dividing the total interest payments for the Bonds (reduced by any premium or accrued interest and increased by any discount) by the product of the issue price (which is the par amount of the Bonds less any discount and increased by any premium) and the weighted maturity of the issue (which is the average maturity of the issue weighted to reflect the dollar amount of each particular maturity).

(b) A maximum Loan amount no greater than seven hundred and fifty thousand dollars ($750,000).

(c) A minimum Loan amount no less than ten thousand dollars ($10,000).

(d) A Loan term not to exceed eight (8) years; provided that no term shall exceed the final maturity of the Bonds.

(e) The Loan is fully amortized.

(f) A Loan fee of two percent (2%) of the amount of the Loan or five hundred dollars ($500), whichever is greater, to be paid to the Authority.

(g) Late charges in the event of a default.

(h) Any other provision agreed to by the parties.

HISTORY

1. New section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

Note

Note: Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.