1. (a) The Authority hereby establishes the Equipment Only Bond Financing Program to encourage bond financing for small businesses to meet their equipment purchasing needs.

   1. (1) Bonds must have a final maturity of 12 years or less.
   2. (2) At least 90% of the net project fund of the proposed bond issue must be used to finance equipment, rolling stock and the like with expected economic lives of no more than 10 years. No real estate, improvements thereto, buildings or the like are eligible.
   3. (3) Bond counsel and disclosure counsel fees are limited to $45,000 collectively.
   4. (4) Applicant's financing consultant fees are limited to 0.5% of par.
   5. (5) Applicant's underwriter fees are limited to 0.7% of par.
   6. (6) Applicant's counsel and co-counsel fees are limited to $12,500 collectively.

   In order to participate in the program, applicants must make the following covenants when they submit their request for financing:

2. (b) The Authority will waive the fee as defined in § 8035(a).
3. (c) No more than $20 million of bonds may be issued per borrower under this program.
4. (d) The program will expire on December 31, 2014.

Note: Authority cited: Section 44520, Health and Safety Code. Reference: Section 44548, Health and Safety Code.

History

1. New section filed 3-7-2011 as an emergency; operative 3-7-2011 (Register 2011, No. 10). A Certificate of Compliance must be transmitted to OAL by 9-6-2011 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 3-7-2011 order transmitted to OAL 8-16-2011 and filed 9-28-2011 (Register 2011, No. 39).

3. Section expired on 3-7-2013 by operation of law pursuant to section 8035.5, subdivision (d), title 4, of the California Code of Regulations (Register 2013, No. 15).

4. New section filed 4-8-2013 as an emergency; operative 4-8-2013 (Register 2013, No. 15). A Certificate of Compliance must be transmitted to OAL by 10-7-2013 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 4-8-2013 order transmitted to OAL 8-28-2013 and filed 10-7-2013 (Register 2013, No. 41).