Cal. Code Regs. Tit. 4, § 8095 - Loan Terms

The terms and conditions of a Loan shall be set forth in a Loan Agreement executed by the Borrower and shall include, at a minimum, all of the following terms and conditions:

(a) A fixed interest rate equal to the Six Month London Interbank Offered Rate (LIBOR) but not less than two percent (2%).

(b) A Loan amount not greater than three hundred thousand dollars ($300,000) or where the proposed use of the Brownfield is for an Infill Development Project as defined in Section 8102, the maximum loan amount shall be five hundred thousand dollars ($500,000) for Eligible Costs with respect to a Brownfield. The Authority may waive the maximum Loan amount upon finding that it is in the public interest and advances the purposes of the program. For purposes of this subdivision, contiguous or related parcels included in a Brownfield Project that are owned or controlled by the same Borrower shall together be deemed to constitute one Brownfield.

(c) A Loan term not to exceed thirty-six (36) months;

(d) Principal and interest to become due and payable in full upon the earliest of:

(1) Issuance of either a grading permit or a building permit for the Brownfield

(2) Sale or transfer (including, without limitation, an option to purchase or a contract of purchase) of all or part of the Brownfield;

(3) The maturity date set forth in the Loan Agreement, which date shall not be more than thirty-six (36) months after the date of the Loan; or

(4) The occurrence of an event of default under the Loan Agreement.

(e) Evidence that the cash portion of the Match will be met at closing of the Loan and a description of and acknowledgment of credit for any non-cash portion of the Match;

(f) Disbursement and repayment procedures pursuant to Section 8096;

(g) A provision that any unused Loan funds shall revert to the Authority;

(h) Default provisions including, but not limited to, interest from and after the date of default at a rate of ten percent (10%) per annum;

(i) Agreement to comply with the Authority's program statutes and regulations;

(j) Agreement that the Borrower will defend, indemnify and hold harmless the Authority and the State, and all officers, trustees, agents and employees of the same, from and against any and all claims, losses, costs, damages, or liabilities of any kind or nature, whether direct or indirect, arising from or relating to the Loan, the Brownfield or this program, including but not limited to, any and all claims, losses, costs, damages, or liabilities arising from or related to the presence, release, threatened release, investigation or remediation of Hazardous Material of the Brownfield;

(k) Agreement to comply with laws outlawing discrimination including, but not limited to those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer or genetic characteristics), sexual orientation, political affiliation, position on a labor dispute, age, marital status, and denial of statutorily-required employment-related leave;

(l) Agreement that continued compliance with program requirements is the Borrower's responsibility;

(m) Agreement that if the Loan is used for Eligible Costs pursuant to Section 8090(k)(1) and/or Section 8090(k)(3), that the Borrower will cause the Independent Consultant to prepare a Final Report;

(n) Agreement that the Borrower will provide or cause to be provided to the Strategic Partner a copy of the Final Report within 30 days of completion of the Final Report;

(o) Agreement that the Borrower will comply with all Hazardous Waste Reporting Laws applicable to the Brownfield or resulting from the contents of the Final Report;

(p) Agreement that the Borrower will deliver to the Strategic Partner within 90 days after Borrower's receipt of the Final Report a certification to the Authority in writing and under penalty of perjury all of the following:

(1) That the Borrower is informed of and understands all Hazardous Waste Reporting Laws applicable to the Brownfield and the contents of the Final Report;

(2) Whether there was a reporting requirement under any of the Hazardous Waste Reporting Laws applicable to the Brownfield or resulting from the contents of the Final Report;

(3) That the Borrower has made all the reports required by the Hazardous Waste Reporting Laws applicable to the Brownfield or resulting from the contents of the Final Report in the manner and within the time periods required by such Hazardous Waste Reporting Laws; and

(4) To whom and when the report was made.

(q) Agreement that Borrower's failure to comply with any Hazardous Waste Reporting Law applicable to the Brownfield or resulting from the contents of the Final Report, or failure to deliver the certification required by Section 8095(p) within the time period required, will constitute an event of default under the Loan resulting in all of the principal and interest on the Loan becoming immediately due and payable.

(r) If the Loan is for Planning for Remediation of Hazardous Materials, agreement that upon entering into the Loan Agreement, the Borrower will identify an Oversight Agency that will oversee and approve the activities that constitute Planning for Remediation of Hazardous Materials;

(s) Agreement by the Borrower to comply with all applicable law, including but not limited to statutes, rules, regulations, administrative orders and agreements, and judicial orders or consent decrees that apply to the Brownfield, related to or arising from assessment, characterization and remediation of a Brownfield, including but not limited to those requiring the preparation of a description of Hazardous Material on the Brownfield and those requiring oversight and supervision to assure the adequacy of any Feasibility Study, Remedial Investigation or Remedial Action Plan by the Oversight Agency;

(t) Agreement that if the Borrower recovers damages from a person who is liable for the release, threatened release, presence or existence of a Hazardous Material at the Brownfield, any money so recovered shall be used first to repay the Loan, except that the Borrower shall be permitted to retain fees and costs incurred in recovering the damages; and

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

Notes

Cal. Code Regs. Tit. 4, § 8095

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 amendment of subsections (b), (d)(2) and (k), transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).
3. Amendment of subsections (a), (b) and (p)(4) 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. Amendment of subsections (a), (b) and (p)(4) 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. Amendment of subsections (a), (b) and (p)(4) 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, including amendment of subsection (a), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

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.

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 amendment of subsections (b), (d)(2) and (k), transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).
3. Amendment of subsections (a), (b) and (p)(4) 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. Amendment of subsections (a), (b) and (p)(4) 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. Amendment of subsections (a), (b) and (p)(4) 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, including amendment of subsection (a), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).