§ 10157. Use of a Guarantor or CO-Borrower.

If an applicant is opting to make its local share match via a lease, the applicant may support its application with a guarantor or co-borrower that is willing to provide a commitment to guarantee the lease. The guarantor or co-borrower may be an individual, government entity, or a for-profit or non-profit organization. Where an applicant intends to use a guarantor or co-borrower, the guarantor or co-borrower must demonstrate its commitment to the guaranty and its financial capability and legal authority to make such a guaranty by taking the following steps:

(a) Submit a letter, drafted in conjunction with Authority staff, describing the terms of the guarantor's or co-borrower's commitment with the charter school's application for Preliminary Apportionment.

(b) Submit the following information with the charter school's application for Preliminary Apportionment:

(1) A Legal Status Questionnaire completed by the guarantor or co-borrower and submitted in the form set forth by the Authority, as part of Form CSFA 03-01, revised 3/04, and found at www.treasurer.ca.gov/csfa/charter/application.pdf;

(2) If the guarantor or co-borrower is a corporation, a copy of the by-laws and articles of incorporation. If the guarantor or co-borrower is not a corporation, other documents which describe the legal structure of the guarantor or co-borrower;

(3) Where applicable, a list of the guarantor's or co-borrower's board of directors, including their occupations, cities of residence, and terms of office;

(4) Where applicable, a copy of the guarantor's or co-borrower's authorization or approval by its governing board to undertake the guaranty;

(5) A minimum of three letters of reference from financial institutions with which the guarantor or co-borrower does business;

(6) Financial statements, audited if applicable, for the three years prior to the date of application. Financial statements shall include budgets, cash flow statements, and balance sheets, and any written assumptions; and

(7) Financial projections which include, but are not limited to, income statements, liquidity, balance of funds, and net assests for at least the next five years, or through the first two fiscal years following occupancy of the Program-funded facility, whichever is longer.

(c) Submit a fully executed guaranty or co-borrower agreement, drafted in conjunction with Authority staff, at the time of release of funds, whether for an Advance Apportionment or for the Final Apportionment.

(d) The information required in Section 10157(b) also must be updated upon the charter school's application for Advance Apportionment and Final Apportionment. The Authority also reserves the right to request periodic updates of information provided by the guarantor or co-borrower between the Preliminary Apportionment and Final Apportionment.

HISTORY

1. New section filed 2-13-2003 as an emergency; operative 2-13-2003 (Register 2003, No. 7). A Certificate of Compliance must be transmitted to OAL by 6-13-2003 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 2-13-2003 order transmitted to OAL 6-12-2003 and filed 7-14-2003 (Register 2003, No. 29).

3. Renumbering of former section 10157 to section 10158 and new section 10157 filed 3-29-2004 as an emergency pursuant to Education Code section 17078.57(b); operative 3-29-2004 (Register 2004, No. 14). A Certificate of Compliance must be transmitted to OAL by 7-27-2004 or emergency language will be repealed by operation of law on the following day.

4. Renumbering of former section 10157 to section 10158 and new section 10157 refiled 7-19-2004 as an emergency pursuant to Education Code section 17078.57(b); operative 7-27-2004 (Register 2004, No. 30). A Certificate of Compliance must be transmitted to OAL by 11-24-2004 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 7-19-2004 order transmitted to OAL 11-8-2004 filed 12-23-2004 (Register 2004, No. 52).

6. Amendment of subsection (a)(4), new subsection (a)(5) and amendment of subsection (b) filed 9-9-2010 as an emergency; operative 9-9-2010 (Register 2010, No. 37). A Certificate of Compliance must be transmitted to OAL by 3-8-2011 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 9-9-2010 order transmitted to OAL 1-19-2011 and filed 2-16-2011 (Register 2011, No. 7).

10. Renumbering of former section 10157 to section 10156 and renumbering and amendment of former section 10159 to section 10157 filed 11-3-2011 as an emergency; operative 11-3-2011 (Register 2011, No. 44). A Certificate of Compliance must be transmitted to OAL by 5-1-2012 or emergency language will be repealed by operation of law on the following day.

11. Certificate of Compliance as to 11-3-2011 order transmitted to OAL 2-7-2012 and filed 3-5-2012 (Register 2012, No. 10).

Note

Note: Authority cited: Section 17078.57, Education Code. Reference: Section 17078.57, Education Code.