1. (a) No Guarantee shall be executed by a Corporation until the proposed guarantee has been reviewed by the Corporation's loan committee, approved by its board of directors and the Corporation receives a Lender Certification.
2. (b) Upon completion of the review and approval specified in subsection (a), the Corporation shall issue a commitment to guarantee and an executed Guarantee to the Lender.
3. (c) In the event that a Guarantee is issued to the Lender without first complying with the requirements of subsection (a), and the Lender relies upon the Guarantee in making the Loan, the failure by the Corporation to so comply shall not constitute a defense on the part of either the Agency or Corporation to paying a Demand for payment made pursuant to section 4013.
4. (d) In any case where funds are disbursed to a Lender pursuant to a Demand 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 Demand.

The potential borrower applying for a Guarantee shall provide a copy of the Application, together with any other information required by these regulations, to the Corporation for processing in accordance with the following procedures:

Note: Authority cited: Section 14075 (b), Corporations Code. Reference: Section 14075 (a), Corporations Code and Section 8684.2, Government Code.

History

1. New section filed 12-8-89 as an emergency; operative 12-8-89 (Register 89, No. 52). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 4-9-90.

2. Amendment of subsections filed 12-22-89 as an emergency; operative 12-22-89 (Register 89, No. 52). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-23-90.

3. Certificate of Compliance as to 12-8-89 and 12-22-89 orders including nonsubstantive amendments transmitted to OAL 4-6-90 and filed 5-7-90 (Register 90, No. 25).

4. Amendment filed 3-22-91 as an emergency; operative 3-22-91 (Register 91, No. 16). A Certificate of Compliance must be transmitted to OAL by 7-22-91 or emergency language will be repealed by operation of law on the following day.

5. Repealer and new section filed 3-19-92 as an emergency; operative 3-19-92 (Register 92, No. 15). A Certificate of Compliance must be transmitted to OAL 7-17-92 or emergency language will be repealed by operation of law on the following day.

6. Renumbering of former section 4011 to section 4611 and new section 4011 filed 6-2-92; operative 6-2-92 (Register 92, No. 24).

7. Amendment of subsections (c) and (d) 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.

8. Editorial correction of History 7 (Register 2005, No. 27).

9. 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).