§ 8094. Loan Approval and Commitment Letter.

(a) Loan Approval.

(1) The Strategic Partner shall be authorized to approve an Application when:

(A) The Application is complete and meets all of the requirements of Section 8091; and

(B) Funds are available.

(2) The Strategic Partner shall give priority to Applications for Loans as follows:

(A) First, for Brownfields not currently listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9605(a)(8)(B)) or for Brownfields that are currently listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9605(a)(8)(B)) for which no viable responsible party has been identified:

i. First, to Brownfields located in Economically Distressed Communities;

ii. Second, to Brownfields located in areas with existing Public Infrastructure; and

iii. Third, to other Brownfields.

(B) Second, for Brownfields that are currently listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9605(a)(8)(B)) and for which a viable responsible party has been identified:

i. First, to Brownfields located in Economically Distressed Communities;

ii. Second, to Brownfields located in areas with existing Public Infrastructure; and

iii. Third, to other Brownfields.

(b) For purposes of this section, Responsible Party means any entity identified in 42 U.S.C. Sections 9607(a)(2), 9607(a)(3) and 9607(a)(4).

(c) Commitment Letter. If the Loan is approved, the Strategic Partner shall notify the Applicant by a letter committing the Authority to provide Loan funds so long as the Applicant strictly complies with the terms and conditions contained therein. The commitment letter shall include at least all of the following:

(1) Name(s) of the Borrower and any guarantor.

(2) Loan amount and term.

(3) A description of Eligible Costs to be financed by the Loan.

(4) Description of Match, including amount and type.

(5) Interest rate and any required loan fees.

(6) A requirement that any evidence described in Section 8092 as being expected prior to the disbursement of loan proceeds shall be received as a condition to disbursement of loan proceeds.

(7) Disbursement process, including a statement that Loan proceeds shall be disbursed on a reimbursement basis.

(8) Insurance requirements.

(9) Conditions and covenants.

(10) The date when the commitment expires.

(11) A statement that the Authority reserves the right to modify or cancel the commitment upon failure of the Applicant to execute a Loan Agreement that includes all of the terms and conditions set forth in the commitment letter, or if the Authority or the Strategic Partner becomes aware of any matter which, if known at the time of Loan review or approval, would have resulted in the Application not being approved. Such matters may include, but will not be limited to:

(A) A determination that the Application was prepared incorrectly, contains incorrect information or omits required information.

(B) Business circumstances that would negatively affect the Applicant's ability to repay the Loan.

HISTORY

1. New section filed 8-13-2001 as an emergency; operative 8-13-2001 (Register 2001, No. 33). Pursuant to Health and Safety Code section 44520, a Certificate of Compliance must be transmitted to OAL by 2-11-2002 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 8-13-2001 order, including new subsection (b)(6) and subsection renumbering, transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Repealer of subsections (a)(2)(A)-(C), new subsections (a)(2)(A)-(B)iii. and (b), subsection relettering and amendment of Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Repealer of subsections (a)(2)(A)-(C), new subsections (a)(2)(A)-(B)iii. and (b), subsection relettering and amendment of Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Repealer of subsections (a)(2)(A)-(C), new subsections (a)(2)(A)-(B)iii. and (b), subsection relettering and amendment of Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

Note

Note: Authority cited: Section 44520, Health and Safety Code. Reference: Sections 44501, 44502, 44504.1, 44505, 44506, 44507, 44508, 44520, 44525.7, 44526(h), 44526(i), 44537.5, 44548(a), 44548(b), 53545 and 53545.14, Health and Safety Code.