California Code of Regulations
Title 14 - Natural Resources
Division 4 - Division of Boating and Waterways
Chapter 1 - Division of Boating and Waterways
Article 1.1 - Public Small Craft Harbor Loan Regulations
Section 5105 - Loan Terms and Conditions
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
The agreement between the department and the applicant shall include but not be limited to the following provisions:
(a) A provision to the effect that the loan will be used for the purpose of developing the project in a continuous and expeditious manner to completion and that the project when completed will be made available and open to all on equal and reasonable terms.
(b) A provision specifying that no loan funds for construction purposes shall be released to an applicant until final plans and specifications for the project (or a particular portion thereof to be constructed with such funds) are approved in writing by the department.
(c) A provision requiring applicant to comply with department approved construction plans and specifications and change orders thereto.
(d) A repayment plan setting forth the provisions for repayment of principal and interest until the loan is repaid in full.
(e) A provision permitting inspection of the project by the department or its agents at any time during construction or after completion, and permitting the inspection and audit of all records of the applicant relating to the project until the loan is paid in full.
(f) A provision that the applicant will provide fire and extended coverage insurance to ninety percent of the value of insurable structures within the project area with the department named as additional insured.
(g) A provision that the applicant will provide insurance, with the department named as additional insured, to cover liability arising from design, planning, construction, maintenance or operation of the project in the following minimum amounts:
(h) A provision allowing applicant to provide self-insurance in the amounts prescribed in subsection (g), above.
(i) A provision that during the loan repayment period applicant shall not sell, lease, transfer, exchange, mortgage or hypothecate in any manner all or any portion of the real property or improvements within the project area without prior written approval of the department.
(j) A provision requiring applicant to establish and capitalize a reserve fund in an amount and under terms and conditions specified by the department.
(k) A statement that surplus revenues shall be administered as follows:
(l) A provision that the department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and copy any records for possible audit for a minimum of three years after final payment, unless a longer period of records retention is stipulated.
(m) A provision that the borrower agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records.
1. Amendment filed 1-20-78; effective thirtieth day thereafter (Register 78, No. 3).
2. Editorial correction of NOTE filed 10-11-85 (Register 85, No. 41).
3. Amendment of section heading, section and NOTE filed 7-2-2001; operative 8-1-2001 (Register 2001, No. 27).
Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code; and General Services, Standard Agreement Language, as found in GTC 699 (as amended 6/99).