1. (a) The Authority shall be authorized to provide any part or combination of the assistance described below, but the Authority shall not be required to provide any particular form of assistance to any applicant. The Authority shall be authorized to provide the form or forms of assistance that, in its judgment, will most effectively assist the applicant to (i) achieve financing for the project; (ii) obtain a bond rating of “A” from a national bond rating service if bonds are issued publicly; and (iii) obtain an effective interest rate for all or a portion of the term of the financing which, in the Authority's judgment, is comparable at the time of financing to the prevailing market rates which would be paid by larger businesses for similar types of financing (but for any conventional loan not lower than the “prime rate” then prevailing):

   1. (1) Pay for the reasonable costs of issuing bonds or obtaining conventional loans. For bond issues, these costs include bond counsel fees, underwriter or placement agent fees or discount and related expenses, printing fees, fees due to other state agencies, accounting fees, consultant's fees, and other expenses directly related to the issuance of bonds that are normally paid from the proceeds of a bond issued at the time of closing. For conventional loans, these costs include counsel fees, loan origination fees, consultant's fees, and other costs normally incurred in obtaining a commercial loan. The costs of issuing bonds or obtaining conventional loans shall not include expenses incurred by the applicant for other attorney fees, staff time, or other expenses related to the application for financing.
   2. (2) Provide financial assistance to reduce the annual fees or premium for a letter of credit, surety bond, insurance policy, or other credit enhancement.
   3. (3) Guarantee to the bond holder, conventional lender or provider of a letter of credit, surety, insurance policy, or other credit enhancement all or a portion of the indebtedness; provided, however, that in no event shall the aggregate amount of such guarantees outstanding at any time with respect to any applicant exceed $2,000,000.
   4. (4) Provide financial assistance to reduce the interest rate on conventional loans or bonds by not more than two percent (2%).
   5. (5) Pay for the Authority's costs (hourly rate for staff labor and Issuer's Counsel fees) associated with a post-issuance request to amend bond documents to reflect an index rate change, in instances where small business borrowers are subject to a nationally recognized index rate.
2. (b) The Authority alone is authorized to approve assistance. The commitment to provide assistance shall be valid only when it is included in a written contract executed by both the Authority and applicant or group of applicants.

In addition to other assistance which the Authority shall be authorized to provide in accordance with this division:

Note: Authority cited: Sections 44519 and 44520, Division 27, Health and Safety Code. Reference: Sections 44525, 44537.5 and 44548, Division 27, Health and Safety Code.

History

1. New section filed 7-3-86; effective upon filing pursuant to Government Code section 11346.2(d) (Register 86, No. 27).

2. Amendment of subsections (b)(2) and (b)(3), repealer of subsection (c) and subsection relettering, and new subsection (e) filed 4-8-93as an emergency; operative 4-8-93 (Register 93, No. 15). A Certificate of Compliance must be transmitted to OAL 10-5-93 pursuant to Health and Safety Code section 44520 or emergency language will be repealed by operation of law on the following day.

3. Certificate of Compliance as to 4-8-93 order transmitted to OAL 8-10-93 and filed 9-7-93 (Register 93, No. 37).

4. Editorial correction of History 2 (Register 93, No. 37).

5. Amendment filed 1-31-94 as an emergency; operative 1-31-94 (Register 94, No. 5). A Certificate of Compliance must be transmitted to OAL by 7-30-94, pursuant to Health and Safety Code section 44520, or emergency language will be repealed by operation of law on the following day.

6. Amendment refiled 7-21-94 as an emergency; operative 7-31-94 (Register 94, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-27-95 pursuant to Health and Safety Code section 44520 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 7-21-94 order including new first paragraph, amendment of subsections (a), (a)(1) and (a)(3) and repealer of subsection (d) transmitted to OAL 1-26-95 and filed 3-9-95 (Register 95, No. 10).

8. Amendment of subsections (a)(3) and (b) filed 10-27-2009 as an emergency; operative 10-27-2009 (Register 2009, No. 44). A Certificate of Compliance must be transmitted to OAL by 4-26-2010 or emergency language will be repealed by operation of law on the following day.

9. Reinstatement of section as it existed prior to 10-27-2009 emergency amendment by operation of Government Code section 11346.1(f) (Register 2010, No. 18).

10. Amendment of subsections (a)(3) and (b) refiled 4-29-2010 as an emergency; operative 4-29-2010 (Register 2010, No. 18). A Certificate of Compliance must be transmitted to OAL by 7-28-2010 or emergency language will be repealed by operation of law on the following day.

11. Amendment of subsections (a)(3) and (b) refiled 7-13-2010 as an emergency; operative 7-13-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 10-11-2010 or emergency language will be repealed by operation of law on the following day.

12. Certificate of Compliance as to 7-13-2010 order, including repealer of subsection (b) and subsection relettering, transmitted to OAL 9-23-2010 and filed 11-4-2010 (Register 2010, No. 45).

13. New subsection (a)(5) and amendment of Note filed 3-28-2022; operative 3-28-2022 (Register 2022, No. 13). A Certificate of Compliance must be transmitted to OAL by 9-26-2022 or emergency language will be repealed by operation of law on the following day.

14. Certificate of Compliance as to 3-28-2022 order transmitted to OAL 8-26-2022 and filed 10-5-2022 (Register 2022, No. 40).