Section 7756 - Defaults and Loan Cancellations(a) Funding commitments may be canceled by the Department under any of the following conditions: (1) the objectives and requirements of the CalHome Program cannot be met;(2) implementation of the local program or project cannot proceed in a timely fashion in accordance with the timeframes established in the Standard Agreement; or(3) funding conditions have not been fulfilled within required time periods.(b) In the event of a breach or violation by the Recipient of any of the provisions of the Standard Agreement, the Development Agreement, the homeownership project development loan promissory note, or the homeownership project development loan deed of trust, or any other agreement pertaining to the homeownership development project, the Department may give written notice to the sponsor to cure the breach or violation within a period of not less than fifteen (15) days. If the breach or violation is not cured to the satisfaction of the Department within the specified time period, the Department, at its option, may declare a default under the relevant document and may seek legal remedies for the default including the following: (1) the Department may accelerate all amounts, including outstanding principal and interest, due under the loan and demand immediate repayment thereof. Upon a failure to repay such accelerated amount in full, the Department may proceed with a foreclosure in accordance with the provisions of the deed of trust and state law regarding foreclosures;(2) the Department may seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or the appointment of a receiver to complete the project in accordance with CalHome Program requirements; and(3) the Department may seek such other remedies as may be available under the relevant agreement or any law.(c) Upon receipt of a notice of intent to cancel the commitment from the Department, the Recipient shall have the right to appeal to the Director.Cal. Code Regs. Tit. 25, § 7756
1. New section filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40). Note: Authority cited: Sections 50406(n) and 50650.2, Health and Safety Code. Reference: Sections 50650.2, 50650.3(b) and 50650.7, Health and Safety Code.
1. New section filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40).