California Code of Regulations
Title 10 - Investment
Chapter 7 - Business, Transportation and Housing Agency: Small Business Loans and Guarantees
Article 9 - Farm Loans
Section 5111 - Disbursement of Farm Lender Loan Funds
Current through Register 2024 Notice Reg. No. 12, March 22, 2024
(a) No Farm Borrower Agreement shall be executed by a Corporation until the proposed Farm Borrower Loan has been reviewed by the Corporation's loan committee and approved by its board of directors, unless the Corporation's board of directors has delegated the authority to approve a proposed Farm Borrower Loan to the Corporation's loan committee. Approval of the Farm Borrower Loan shall be evidenced by adoption of a corporate resolution approving the loan. The Corporation shall retain the resolution and the minutes of loan committee and board of directors meetings at which the loan was discussed and approved, including any conditions placed on the loan.
(b) Disbursement of loan proceeds to the Farm Lender for Farm Borrower Loans will be made only if the Farm Lender is a party in good standing to an existing Farm Lender Credit Agreement.
(c) Within ten (10) calendar days of receiving a Farm Lender Disbursement Request for a previously approved Farm Borrower Loan, the Agency shall notify the Farm Lender of disbursement approval, provided:
(d) In any case where funds are disbursed to a Corporation pursuant to a Farm Lender Disbursement Request and the Corporation has failed to comply with subsection (a), the Agency shall immediately exercise all available legal remedies to recover from the Corporation the funds disbursed pursuant to the Farmer Lender Disbursement Request.
1. Repealer
and new section filed 2-1-94 as an emergency; operative 2-1-94 (Register 94,
No. 5). A Certificate of Compliance must be transmitted to OAL by 8-1-94
pursuant to Corporations Code section
14024 or
emergency language will be repealed by operation of law on the following day.
For prior history, see Register 89, No. 8.
2. Amendment filed
12-27-2004 as a deemed emergency pursuant to Corporations Code section
14024;
operative 12-27-2004 (Register 2004, No. 53). A Certificate of Compliance must
be transmitted to OAL by 6-27-2005 or emergency language will be repealed by
operation of law on the following day.
3. Editorial correction of
HISTORY 2 (Register 2005, No. 27).
4. Certificate of Compliance as
to 12-27-2004 order, including amendment of NOTE, transmitted to OAL 5-25-2005
and filed 7-7-2005 (Register 2005, No. 27).
5. Amendment filed
8-4-2008 as an emergency; operative 8-4-2008 (Register 2008, No. 32). A
Certificate of Compliance must be transmitted to OAL by 2-2-2009 or emergency
language will be repealed by operation of law on the following
day.
6. Certificate of Compliance as to 8-4-2008 order transmitted
to OAL 1-26-2009 and filed 2-19-2009 (Register 2009, No.
8).
Note: Authority cited: Section 14024, Corporations Code. Reference: Sections 14067 and 14070, Corporations Code.