California Code of Regulations
Title 10 - Investment
Chapter 7 - Business, Transportation and Housing Agency: Small Business Loans and Guarantees
Article 2.5 - ILOC as Bond Collateral
Section 5014 - ILOC Terms
Current through Register 2024 Notice Reg. No. 12, March 22, 2024
The terms and conditions of an ILOC shall be consistent with the resolution of the Corporation approving the ILOC and shall include all of the following:
(a) Provision that the Corporation promises to pay a specified amount to Surety upon Surety establishing a claim reserve.
(b) The maximum amount of the ILOC shall be 15% of the contract amount, not to exceed $350,000.
(c) Where the Bond is for a public works project, a statement that the ILOC shall expire one hundred and twenty days following receipt by Surety of a statement from the party requiring the Bond ("Obligee") that the work has been completed and fully accepted and that Obligee has made payment of all amounts owed the Principal pursuant to the Bond. The ILOC shall expire only if no notice of Claim is pending with the Surety. If the Bond is for other than a public works project, then the Corporation and Surety shall include in the ILOC what events and timing trigger expiration of the Guarantee.
(d) The Corporation fee not to exceed two percent of the ILOC amount.
(e) The terms and conditions of the Bond collateralized by the ILOC shall be in accord with those generally established and accepted by the Surety for the type of contract for which the Bond is required.
(f) A statement that:
1. New section
filed 2-15-94 as an emergency; operative 2-15-94 (Register 94, No. 7). A
Certificate of Compliance must be transmitted to OAL by 6-15-94 or emergency
language will be repealed by operation of law on the following
day.
2. Repealed by operation of Government Code section
11346.1(g)
(Register 95, No. 7).
3. New section filed 4-17-95 as an emergency;
operative 4-17-95 (Register 95, No. 16). A Certificate of Compliance must be
transmitted to OAL by 8-15-95 or emergency language will be repealed by
operation of law on the following day.
4. Certificate of Compliance
as to 4-17-95 order transmitted to OAL 6-12-95 and filed 7-25-95 (Register 95,
No. 30).
Note: Authority cited: Section 14022(b), Corporations Code. Reference: Sections 14002, 14055, 14071 and 14071.5, Corporations Code.