Section 7016 - Loan Termination(a) Loan commitments or Loan Agreements may be terminated, or the loan amounts reduced, by the Department if the Director determines that: (1) One or more conditions to commitment, agreement, or disbursement have not been or will not be met;(2) Development of the Assisted Housing is not progressing or is anticipated not to progress within a reasonable time as determined by the Department.(3) The objectives of the loan cannot be met; and/or(4) The Department's security is jeopardized.(b) If the Department determines that a purchased site cannot be developed by a Borrower within a reasonable period of time as determined by the Department, the Borrower shall convey the site to the Department, which shall transfer the site to be sold pursuant to Health and Safety Code Sections 50406(o) and 50532(c). In determining a reasonable period of time, the Department shall consider factors in 7004, Borrower cooperation with the Department's requirements, and continuing progress toward developing the site and obtaining Construction and Permanent Financing.Cal. Code Regs. Tit. 25, § 7016
1. Amendment filed 6-19-80; effective thirtieth day thereafter (Register 80, No. 25).
2. Repealer and new section filed 1-5-82; effective thirtieth day thereafter (Register 82, No. 2).
3. Renumbering and amendment of former Section 7016 to Section 7018, and renumbering and amendment of former Sections 7014 and 7714(a)(2) to Section 7016 filed 8-13-85; effective thirtieth day thereafter (Register 85, No. 33).
4. Amendment of section and NOTE filed 9-19-2003; operative 10-19-2003 (Register 2003, No. 38). Note: Authority cited: Sections 50402 and 50406, Health and Safety Code. Reference: Sections 50530, 50530.5, 50531 and 50532, Health and Safety Code.
1. Amendment filed 6-19-80; effective thirtieth day thereafter (Register 80, No. 25).
2. Repealer and new section filed 1-5-82; effective thirtieth day thereafter (Register 82, No. 2).
3. Renumbering and amendment of former Section 7016 to Section 7018, and renumbering and amendment of former Sections 7014 and 7714(a)(2) to Section 7016 filed 8-13-85; effective thirtieth day thereafter (Register 85, No. 33).
4. Amendment of section and Notefiled 9-19-2003; operative 10-19-2003 (Register 2003, No. 38).