Section 8028 - Disbursement of Loan Funds(a) The department shall disburse funds pursuant to the terms and conditions specified in the transaction documents with the departments. (1) The department shall condition the disbursement of funds on the execution and recordation of those documents necessary to secure its financial and statutory interests, which may include, but are not limited to: promissory notes, deeds of trust, or regulatory agreements.(2) The department may disburse funds directly to parties other than to signatories to the standard agreement if payments to those parties are specified in the standard agreement.(3) The department may disburse funds prior to the borrower satisfying all of the conditions of Section 50786(d) of the Code if the funds will be held by a local public entity, mortgage lender or escrow company until conditions are met.(4) Advance payments not exceeding 25% of the loan amount may be made if the department determines they are necessary to complete the project and if the State's interest and security are met.(b) The department shall establish presale requirements for each project which must be met prior to the closing for a blanket or individual loans. The presale requirements may include additional requirements such as a higher, minimum percentage of sales if needed to protect the security of program loans. Where program loan funds are being used to purchase individual ownership interests, the minimum percentage of 67 percent (67%) of occupied spaces may be increased to 67 percent (67%) of all spaces in the park. Sales, for the purpose of calculating this percentage, shall include previously consummated sales, sales to be financed with program loans that are ready to close, and sales with other financing that will be consummated simultaneously with the closing of the program loans.(c) The department may fund blanket loans and individual loans in escrow from the repayment of conversion loans for the project. The department may provide partial releases from the deed of trust and the regulatory agreement as individual loans are funded and recorded.Cal. Code Regs. Tit. 25, § 8028
1. Amendment of section and NOTE filed 5-11-2001; operative 5-11-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 19). Note: Authority cited: Sections 50406(n) and 50786, Health and Safety Code. Reference: Sections 50406, 50406.5 and 50786, Health and Safety Code.
1. Amendment of section and Note filed 5-11-2001; operative 5-11-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 19).