Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
The Director shall enter into a Commitment Agreement with each Grantee which
shall set forth the terms and conditions of the Grant.
(b) The Commitment Agreement shall include
the following information:
(1) A description
of the Project or Projects to be funded from proceeds of the Grant or proceeds
of Obligations to be repaid from the Grant;
(2) If applicable, the dates on which the
Grant is payable and the amount of the Grant payable on each such
date;
(3) The priority of the
payment of each Grant as compared with the payment of other Grants which have
been or might be made pursuant to the Act.
(4) A statement that the Director shall not
subsequently amend the priority provisions contained in the Commitment
Agreement in any way which could materially adversely affect the interests of
any Grantee or the holders of any Obligations without the consent of such
Grantee and all such holders.
(5) A
statement that neither the faith and credit nor the taxing power of the State
of California or any political subdivision thereof is pledged to the payment of
the principal of or premium, if any, or interest on the Obligations.
(6) A representation by the Grantee that it
shall use the proceeds of the Grant or the proceeds of the Obligations only for
Project Costs of the Project or Projects described in the Commitment
Agreement.
(7) A statement that all
construction contracts entered into in connection with the Project shall comply
with any applicable provisions of the California Public Contracts Code, the
State Building Code as set forth in Title 24 of California Code of Regulations,
and any other applicable state law.
(8) A statement that (i) the Director shall
be authorized to review at the Director's discretion, the approved Project or
Projects, where the Project or Projects exceed by ten percent (10%) or $50,000,
whichever is lesser, those amounts allocated for the Project or Projects, and
(ii) the Director shall take no action that materially adversely affects the
owners of any Obligations issued in connection with the Project or
Projects.
(c) The
Commitment Agreement shall contain such provisions regarding the right of
assignment as may be agreed upon by the parties thereto.
1. New
section filed 11-14-88 as an emergency; operative 11-14-88 (Register 88, No.
47). A Certificate of Compliance must be transmitted to OAL within 120 days or
emergency language will be repealed on 3-14-89.
2. Certificate of
Compliance including amendment of subsection (b)(7) transmitted to OAL 11-30-88
and filed 12-30-88 (Register 89, No. 2).
Note: Authority cited: Section
19596.15,
Business and Professions Code. Reference: Sections
19596.5(f)(1),
19596.6(i)(1)
and
19596.15,
Business and Professions Code.
