California Code of Regulations
Title 10 - Investment
Chapter 7.1 - Business, Transportation and Housing Agency: Metal Plating Facility Loan Guarantees
Article 1 - Metal Plating Facility Loan Guarantees
Section 5280 - Definitions

(a) "Act" means Article 1 (commencing with section 42100) of Chapter 2 of Part 3 of Division 30 of the Public Resources Code.

(b) "Air District" means the local Air Quality Management District or Air Pollution Control District.

(c) "Application" means all of the information required by a corporation in order to determine whether to offer a borrower a guarantee.

(d) "Board of Directors" means the governing board of a corporation established pursuant to Corporations Code section 14055.

(e) "Borrower" means an eligible business that has received a commitment for a loan, or has prepared an application. In order to be an "eligible business", the business must meet all of the eligibility requirements defined in section 5281.

(f) "CEQA" means the California Environmental Quality Act as set forth in Division 13 (commencing with section 21000) of the Public Resources Code.

(g) "Collateral" means those personal and business assets of the borrower and guarantor subject to a lien under the loan.

(h) "Collection guarantee" means a guarantee of a specified percentage of net loan principal and ninety (90) days interest at the same percentage. "Net loan principal" as used in this paragraph means the amount of loan principal remaining outstanding after the lender has fully complied with the collection procedures in section 5286.

(i) "Corporation" means a Financial Development Corporation formed under the California Small Business Financial Development Corporation Law (Chapter 1 [commencing with section 14000], Part 5, Division 3, Corporations Code).

(j) "Default" means either a delinquency which has not been cured within ninety (90) days, or that the borrower is in bankruptcy.

(k) "Delinquency" means the failure of the borrower to make any payment when due, pursuant to the terms of the loan, except for any principal payment due at the maturity of the loan.

(l) "Demand" means a request for payment by a lender to a corporation pursuant to section 5285.

(m) "Environmental audit" means an investigation that may be required by a lender or a corporation into the applicant's operations and compliance with federal, state and local environmental laws, regulations and rulings, which would indicate whether the facility is, or is likely to become, contaminated.

(n) "Environmental control equipment" means equipment or technologies that will enable the borrower to meet new or exceed existing regulatory requirements, or both, and implement additional pollution prevention and emission reduction opportunities.

(o) "Guarantee" means a written agreement to warrant the repayment of a portion of a loan or payment of all or a portion of a claim, with repayment from the Chrome Plating Pollution Prevention Fund established by Public Resources Code section 42102. Every guarantee of a loan shall be either a collection guarantee or a loan guarantee.

(p) "Hazardous waste" means waste or a combination of wastes as defined in Health and Safety Code sections 25115 and 25117.

(q) "Identification number" means a number assigned pursuant to Title 22, section 66262.12 of the California Code of Regulations.

(r) "Lender" means a banking organization, including national banks and trust companies and state chartered commercial banks, savings and loan associations, credit unions, state insurance companies, mutual insurance companies, and other banking, lending, retirement, and insurance organizations, authorized to conduct business in California.

(s) "Loan" means a loan by a lender to a borrower, which is guaranteed pursuant to section 5284, made for the purpose of purchasing environmental control equipment.

(t) "Loan agreement" means an agreement for a loan entered into between a lender and a borrower that is guaranteed pursuant to section 5284.

(u) "Loan committee" means a committee established pursuant to Corporations Code section 14060 to review applications for guarantees and make recommendations to the board of directors.

(v) "Loan guarantee" means a guarantee of a specified percentage of loan principal and ninety (90) days interest at the same percentage.

(w) "NAICS" means North American Industrial Classification System code published by the United States Office of Management and Budget, 1997 edition.

(x) "Reviewing agencies" means the Air Board or Air District, the Department, and the Water Board.

(y) "Toxic air contaminant" means an air pollutant that may cause or contribute to an increase in mortality or in serious illness, or which may pose a present or potential hazard to human health. For the purposes of this article, toxic air contaminant means a substance identified by the Air Resources Board including, but not limited to, hexavalent chromium; nickel and nickel compounds; cadmium and cadmium compounds, and, copper and copper compounds.