Section 18401 - Loan Guarantee CriteriaThe Board may guarantee a loan only if it determines that the borrower meets the following criteria:
(a) The borrower has met the requirements, if applicable, of Public Resources Code section 46202.(b) The loan guarantee, if provided, shall be used to secure a loan from an approved lending institution to implement a qualifying corrective action, which is required to be taken pursuant to section 41805.5 of the Health and Safety Code or section 13273 of the Water Code, or pursuant to directions from a state or local enforcement agency.(c) The borrower is unable to secure adequate finances for a qualifying corrective action and has provided written evidence that this guarantee is necessary in order to secure adequate finances. Evidence may include, but is not limited to, credit evaluations from approved lending institutions indicating that a guarantee is needed in order for the loan to be made. (1) The landfill owner or operator shall have attempted to secure financing through conventional funding mechanisms. including but not limited to increased tipping fees, to cover the cost of implementing the corrective action.(2) The borrower is unable to obtain the required financing from any of its parent, subsidiary or associated enterprises.(d) If the facility is in the process of closing,the borrower must be undertaking the planned closure and postclosure maintenance activities. If any part of the facility has already been closed, the borrower must be undertaking the planned closure and postclosure maintenance activities on the closed portion.(e) The borrower is able to repay the loan. (1) Evaluation of the borrower's ability to repay shall be based on the borrower's financial statements for the previous three (3) years.(A) Each of these statements shall consist of a balance sheet, an income statement, and a statement of changes in financial position, all of which will have been prepared according to generally accepted accounting principles.(B) If the latest complete financial statement is more than six (6) months old, an interim financial statement not older than sixty (60) days shall be included.(2) If financial statements are not available, the borrower will provide other information acceptable to the Board which establishes a financial ability to repay the loan, such as: (B) Credit reports from Retail Credit Association and other credit reporting agencies,(C) An appraisal report showing the value of real and personal property which is suitable as collateral.(f) The loan which is to be guaranteed will be secured by collateral as the Board may require, such as, but not limited to, a mortgage or security interest in real estate, and buildings or personal property of the borrower. These items may only be subject to encumbrances that the Board may approve, such as, assignment or pledges of leases, and personal or corporate guarantees. Only the unencumbered equity portion of the property accepted as collateral shall be considered as collateral. Personal guarantees of the principals shall be required, unless reasons satisfactory to the Board are presented which justify not requiring such guarantees.(1) Real state or stationary machinery or equipment pledged as a significant portion of collateral for repayment of a guaranteed loan shall be located within the State of California. Real estate pledged as collateral shall not include land which has been used as a solid waste disposal site.Cal. Code Regs. Tit. 14, § 18401
1. Editorial renumbering of former section 18401 to section 18499, and new section 18401 filed 4-2-90; operative 5-2-90 (Register 90, No. 14). For prior history, see Registers 89, No. 1 and 81, No. 9.
2. Change without regulatory effect amending section filed 5-17-91 pursuant to section 100, title 1, California Code of Regulations (Register 91, No. 27). Note: Authority cited: Sections 46201 and 40502, Public Resources Code. Reference: Sections 46205 and 46303- 46307, Public Resources Code.
1. Editorial renumbering of former section 18401 to section 18499, and new section 18401 filed 4-2-90; operative 5-2-90 (Register 90, No. 14). For prior history, see Registers 89, No. 1 and 81, No. 9.
2. Change without regulatory effect amending section filed 5-17-91 pursuant to section 100, title 1, California Code of Regulations (Register 91, No. 27).