Section 7464 - Loan Closing, Security, and Disbursements(a) Before the Department may disburse funds to any sponsor, the approved loan shall be closed by execution of the following agreements and documents, which will have been prepared by the Department or at its direction: (1) a regulatory agreement;(3) security instrument(s); and(4) other agreements and documents required by the Department.(b) The sponsor must demonstrate that sufficient security may be given to secure both the amount of the loan and the obligations and restrictions of the regulatory agreement. A deed of trust in a form approved by the Department shall be executed in favor of the Department. Upon execution by the sponsor and Department, the deed of trust and regulatory agreement, which shall constitute an enforceable lien on the rental housing development, shall be recorded in the office of the county recorder of the county in which the rental housing development to which they relate is located.(c) Loan Disbursements. Program loan funds will be disbursed to, or on the behalf of, the sponsor as the need for funds arises. Sponsors must request disbursements of loan funds on forms approved by the Department at least 20 days before receipt is required. Disbursement requests must be supported with evidence of an obligation. The Department may contract for services related to the disbursement of loan funds to sponsors.(d) The sponsor shall obtain ownership of the rental housing development within six months of loan approval. No funds shall be disbursed for rehabilitation work until the sponsor owns the rental housing development.Cal. Code Regs. Tit. 25, § 7464
1. Amendment of subsection (c) filed 4-5-84; effective thirtieth day thereafter (Register 84, No. 14). Note: Authority cited: Section 50622, Health and Safety Code; Reference: Sections 50669- 50670, Health and Safety Code.
1. Amendment of subsection (c) filed 4-5-84; effective thirtieth day thereafter (Register 84, No. 14).