California Code of Regulations
Title 4 - Business Regulations
Division 15 - California School Finance Authority
Article 1 - Charter School Facilities Program
Section 10157 - Succession and Security Provisions
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Pursuant to Education Code, Section 17078.62(b)(3), the school district in which the Charter School is physically located may take possession and title of the facility only after having demonstrated due diligence in soliciting alternative Charter Schools within the local area to take possession and title of the facility, as permitted by Education Code Section 17078.62(b)(2). Such demonstration of due diligence shall be at the Authority's discretion, but shall include, but not be limited to, documentary evidence of solicitation of Charter Schools within the district boundaries, where applicable.
(b) Title to project facilities may be held by the school district in whose boundaries the facility is to be physically located, in trust, for the benefit of the state public school system.
(c) Title to project facilities may be held by a Charter School or a local governmental entity other than the school district in accordance with Sections 17078.57, 17078.62, and 17078.63 of the Education Code.
(d) Any person or entity providing a substantial contribution that is applied to the costs of the project in excess of the state share and the local matching share may be granted a security interest to be satisfied from the proceeds, if any, realized when the property is ultimately disposed of. If the contribution was made for the explicit purpose of purchasing any asset with a normal life expectancy of less than twenty years, the security interest will be adjusted to reflect the depreciation of the asset(s).
(e) Any person or entity that provides a contribution to the Applicant which is used solely to assist the Applicant in meeting its Local Matching Share shall not be entitled to a security interest as provided in subsection (b). Where the contribution results in total Project funding beyond the State share and Local Matching Share, the contributor's security interest shall be limited to the amount in excess of the State share and Local Matching Share.
(f) If a default occurs and all Matching Share Payments have not been made, the security interest of any person or entity providing a substantial contribution to the costs of the Project shall be satisfied only after the account is reimbursed for any remaining unpaid local matching share.
(g) Specific terms of security provisions for persons or entities providing a substantial contribution shall be determined on a case-by-case basis.
(h) Prior to the release of funds, the Applicant shall submit evidence of a separate and distinct account for deposits of all Program loan proceeds.
1. New section
filed 2-13-2003 as an emergency; operative 2-13-2003 (Register 2003, No. 7). A
Certificate of Compliance must be transmitted to OAL by 6-13-2003 or emergency
language will be repealed by operation of law on the following day.
2.
Certificate of Compliance as to 2-13-2003 order transmitted to OAL 6-12-2003 and
filed 7-14-2003 (Register 2003, No. 29).
3. Renumbering of former section
10157 to section
10158 and new section 10157 filed
3-29-2004 as an emergency pursuant to Education Code section
17078.57(b);
operative 3-29-2004 (Register 2004, No. 14). A Certificate of Compliance must be
transmitted to OAL by 7-27-2004 or emergency language will be repealed by operation
of law on the following day.
4. Renumbering of former section 10157 to
section 10158 and new section 10157 refiled
7-19-2004 as an emergency pursuant to Education Code section
17078.57(b);
operative 7-27-2004 (Register 2004, No. 30). A Certificate of Compliance must be
transmitted to OAL by 11-24-2004 or emergency language will be repealed by operation
of law on the following day.
5. Certificate of Compliance as to 7-19-2004
order transmitted to OAL 11-8-2004 filed 12-23-2004 (Register 2004, No.
52).
6. Amendment of subsection (a)(4), new subsection (a)(5) and
amendment of subsection (b) filed 9-9-2010 as an emergency; operative 9-9-2010
(Register 2010, No. 37). A Certificate of Compliance must be transmitted to OAL by
3-8-2011 or emergency language will be repealed by operation of law on the following
day.
9. Certificate of Compliance as to 9-9-2010 order transmitted to OAL
1-19-2011 and filed 2-16-2011 (Register 2011, No. 7).
10. Renumbering of
former section 10157 to section
10156 and renumbering and amendment of
former section 10159 to section 10157 filed 11-3-2011
as an emergency; operative 11-3-2011 (Register 2011, No. 44). A Certificate of
Compliance must be transmitted to OAL by 5-1-2012 or emergency language will be
repealed by operation of law on the following day.
11. Certificate of
Compliance as to 11-3-2011 order transmitted to OAL 2-7-2012 and filed 3-5-2012
(Register 2012, No. 10).
12. Repealer of former section 10157 and
renumbering of former section
10159 to new section 10157, including
amendment of section heading and section, filed 7-3-2018; operative 10-1-2018
(Register 2018, No. 27).
Note: Authority cited: Section 17078.57, Education Code. Reference: Section 17078.57, Education Code.
