Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The
terms and conditions of the Qualified Loans, including rates, and fees, shall
be determined solely by agreement between the Participating Financial
Institution and the Borrower.
(b) A
Participating Financial Institution shall be authorized to enroll under the
Program all or a part of any Qualified Loan by notifying the Authority in
writing, within 15 business days after the Qualified Loan is made, that the
Participating Institution is enrolling a Qualified Loan. For purposes of this
section, the date on which the Participating Financial Institution makes a
Qualified Loan is the date on which the Participating Financial Institution
first disburses proceeds of the Qualified Loan to the Borrower.
(c) The notification to the Authority shall
include at least the following information:
(1) Borrower name, which includes the
Borrower's legal name and the name by which the Borrower does business, if any,
and the business address.
(2) Brief
description of the Borrower's business and regular activities, Census Tract
Number associated to the Borrower's business address, and the location of the
facilities being financed if different, the NAICS Code(s) applicable to
Borrower's business, and the amount of its average annual revenue for the past
three (3) years.
(3) Whether this
business has been open for two (2) years or more, and is owned by one of the
following: a woman, minority, or veteran.
(4) Brief summary of the intended use of the
proceeds of the Qualified Loan consistent with Eligible Purchases, including
the tractor model, engine model and fuel type of each vehicle, the model of
each trailer or diesel particulate filter, and the number of each Eligible
Purchase.
(5) Amount of the
Qualified Loan being enrolled in the Program, the total amount of loan, and the
Participating Financial Institution loan number.
(6) Whether the Qualified Loan is secured or
unsecured, and whether it is a term loan or TRAC lease.
(7) Date of the Qualified Loan, based on the
first disbursement of proceeds to the Borrower.
(8) Interest rate applicable to the Qualified
Loan.
(9) Term or maturity date of
the Qualified Loan.
(10)
Certification by the Participating Financial Institution of the following:
(A) The Borrower has validated the number of
employees currently employed by the Borrower.
(B) The loan is a Qualified Loan for Eligible
Costs, and that the business receiving the Qualified Loan is a Qualified
Business.
(C) The Borrower's
business activity has its Primary economic effect in California, and the
vehicle is registered in California, substantiated by the California Department
of Motor Vehicles.
(D) Upon request
by the Executive Director, the Participating Financial Institution shall
provide information from the financial records of the Borrower, including
documents validating the Borrower's establishment of a business entity, and
that the Participating Financial Institution has obtained the consent of the
Borrower to such disclosure.
(E)
The total amount of loans for the borrower enrolled in the CalCAP/ARB Program
does not exceed $2,500,000 over a three year period.
(F) The Participating Financial Institution
has obtained a written representation from the Borrower that the Borrower has
no legal, beneficial or equitable interest in the CalCAP/ARB
Contribution.
(G) The Participating
Financial Institution has validated that the Borrower has secured all
applicable licenses and permits to conduct its business.
(H) The lending activities of the
Participating Financial Institution are subject to any applicable safety and
soundness standards as set forth in applicable lending regulations.
(I) The Participating Financial Institution
has not, and will not, enroll the Qualified Loan, or any portion thereof, in
any other government program substantially similar to the Program.
(J) No portion of the loan is a
Refinance.
(K) The Participating
Financial Institution has provided the Borrower the Authority's Privacy Notice
for the CalCAP/ARB On-Road HDV Air Quality Loan Program, which provides the
notice required under the California Information Practices Act (Civil Code
section
1798.17). The
Privacy Notice informs the Borrower that personal information protected by the
CIPA may be disclosed under the following circumstances:
(i) To consultants, auditors or contractors
retained by the Authority or ARB where disclosure is required to fulfill
CalCAP/ARB Program requirements and subject to a nondisclosure
agreement;
(ii) To another
governmental entity where required by state or federal law; or
(iii) As otherwise required by
law.
(L) The
Participating Financial Institution will make available to the Authority all
books and records related to the use of the funds in the Loss Reserve
Account;
(M) The Participating
Financial Institution shall be authorized to certify to the information
requested under subdivisions (c)(10)(A), (B), (C), (D), (F), (G), and (H) based
upon the Participating Financial Institution's established due diligence and
underwriting standards applied in the regular course of business, and shall
maintain substantiating documentation in the Borrower's loan
file.
(11) The submittal
of a completed Borrower's Eligibility Criteria and Self-Certification form in
which the Borrower certifies that:
(A) The
Borrower is using the proceeds to purchase on-road heavy duty diesel vehicle(s)
or other Eligible Purchases to comply with ARB's Statewide In-Use Truck and Bus
Regulation as defined in Section
2025, Title 13, of the California
Code of Regulations;
(B) The
Borrower's business activities have a Primary economic effect in
California;
(C) The Borrower agrees
to allow the Participating Financial Institution to provide information from
financial records of the Borrower upon request of the Executive
Director;
(D) The Borrower has no
legal, beneficial, or equitable interest in the CalCAP/ARB
Contribution;
(E) The Borrower
meets state and federal requirements to operate in California and that the
Borrower has secured all applicable licenses and permits needed to conduct
business;
(F) The enrolled amount
of the loan in this Program is limited to Eligible Purchases;
(G) The Borrower agrees to allow the
Authority or its designee to review all information in the loan file maintained
by the Participating Financial Institution;
(H) The Borrower either has or has not
received any grants or vouchers through the ARB's Proposition 1B Goods Movement
Emission Reduction program, the ARB's Carl Moyer On-Road Heavy Duty Vehicle
Voucher Incentive program or the ARB's Hybrid and Zero-Emission Truck and Bus
Voucher Incentive project for the financed vehicle(s);
(I) The Borrower agrees to allow ARB staff or
its designee to inspect the affected vehicle(s);
(J) The Borrower does not have a total
enrolled principal amount in excess of $2,500,000 at any CalCAP Participating
Financial Institution over a three (3) year period;
(K) The Borrower has received CPCFA's
CalCAP/ARB Privacy Notice and that the Borrower is not any of the following: an
executive officer, director, or principal shareholder of the Participating
Financial Institution; a member of the immediate family of any of those
individuals; or a related interest of those individuals; and
(L) The accuracy of specific information
regarding the fleet size, the vehicle, and equipment, including: truck(s) gross
vehicle weight rating, engine manufacturer, model year, and horsepower,
replacement truck(s), device(s) manufacturer, and model and technology
type.
(d) The
Participating Financial Institution must notify the Authority whenever the
material terms of an enrolled loan change prior to maturity, including TRAC
Lease assumptions, by submitting a Change in Terms notification within fifteen
(15) business days after such change.
(1) If
any of the terms other than the interest rate have changed, then the
Participating Financial Institution shall also submit an amended loan
enrollment application, including new lender and borrower certifications, for
the loan.
(2) If the Authority
determines that the changes in material terms constitutes an ineligible
Refinance or not a Qualified Loan as defined in Section
8078.22, neither the original nor
the revised loan will continue to be enrolled in the Program.
(3) Notwithstanding the ineligibility of a
Refinance, the Authority may authorize an extension of the maturity date of an
enrolled loan for up to eighteen (18) months, if the Participating Financial
Institution has provided the Authority written certification to its credit
policy that provides for such extensions of the maturity date. Such
authorization is contingent upon the submittal of the Change in Terms, an
amended loan enrollment application, and new lender and borrower certifications
for the loan.
(e) Loan
enrollments submitted after August 15, 2017 will be subject to Recapture as
specified in Section
8078.25.
1. New section
filed 8-7-2017 as an emergency; operative 8-7-2017 pursuant to Health and
Safety Code section
44520(b)
(Register 2017, No. 32). A Certificate of Compliance must be transmitted to OAL
by 2-5-2018 or emergency language will be repealed by operation of law on the
following day, pursuant to Health and Safety Code section
44520(b).
2.
Certificate of Compliance as to 8-7-2017 order, including new subsections
(d)-(d)(3) and redesignation of former subsection (c)(12) as new subsection
(e), transmitted to OAL 1-31-2018 and filed 3-15-2018; amendments operative
3-15-2018 pursuant to Government Code section
11343.4(b)(3)
(Register 2018, No. 11).
3. Amendment of subsections (c)(10)(C) and
(d)(3) filed 7-31-2020 as an emergency; operative 7-31-2020 (Register 2020, No.
31). Emergency expiration extended 60 calendar days (Executive Order N-40-20)
plus an additional 60 days (Executive Order N-66-20). A Certificate of
Compliance must be transmitted to OAL by 5-28-2021 or emergency language will
be repealed by operation of law on the following day.
4. Certificate
of Compliance as to 7-31-2020 order, including amendment of NOTE, transmitted
to OAL 11-24-2020 and filed 1-11-2021; amendments operative 1-11-2021 pursuant
to Government Code section
11343.4(b)(3)
(Register 2021, No. 3).
Note: Authority cited: Sections
44520,
44559.5
and
44559.11,
Health and Safety Code. Reference: Section
44559.2,
Health and Safety Code; and Section
1798.17, Civil
Code.
