Article 3 - Borrowing from the Fund - California Financial Code

Sections (5)

Added by Stats. 1980, Ch. 819, Sec. 1.

The corporation is authorized to borrow money from the fund, subject to the following terms and conditions:

(a)The interest rate on loans from the fund to the corporation shall be six percent per annum;

(b)The maximum term of the loans to the corporation shall be for 20 years;

Added by Stats. 1989, Ch. 1040, Sec. 21.

Upon approval of the corporation to exercise the powers of a small business development corporation pursuant to Section 32352, the corporation shall cease to be liable for payment of interest on loans made or to be made from the fund pursuant to this article.

§ 32821

Added by Stats. 1980, Ch. 819, Sec. 1.

The corporation shall make application in writing to the Controller for loans from the fund.

§ 32822

Amended by Stats. 1983, Ch. 323, Sec. 31.5. Effective July 1, 1983.

Within five working days after receipt of an application from the corporation for a loan from the fund, the Controller shall disburse the proceeds of the loan to the corporation, unless:

(a)The corporation is in default on any previous loan from the fund; or

(b)In order to lend the amount requested by the corporation, the Controller would be required to transfer to the fund amounts which cumulatively would exceed the maximum amount specified in Section 32812.

§ 32823

Added by Stats. 1980, Ch. 819, Sec. 1.

If the Controller finds either subdivision (a) or (b) of Section 32822 to be the case, the Controller shall deny the loan application of the corporation.