Section 10056 - Claim for Reimbursement(a) A Participating Financial Institution shall notify the Authority within sixty (60) calendar days after it has charged off all or part of a Qualified Loan as a result of a default by the Borrower.(b) A Participating Financial Institution shall be authorized to make a claim for reimbursement of a loss from the enrolled portion of a Qualified Loan prior to the liquidation of collateral, or realization on personal or other financial guarantees or from other sources. A Participating Financial Institution may also defer, for a period not to exceed one hundred eighty (180) calendar days from the date of the charge-off, at its sole discretion, making a claim for reimbursement, but still must inform the Authority of charge-off status within sixty (60) calendar days.(c) The Authority shall pay claims within thirty (30) calendar days of receipt of a completed claim request; provided, however, that the Executive Director shall be authorized to reject a claim if it is determined that the representations and warranties provided by the Participating Financial Institution pursuant to Section 10054 at the time of enrolling the Qualified Loan were false. The Authority shall be authorized, upon providing written notice to the Participating Financial Institution, to defer payment of claims up to an additional thirty (30) calendar days if the Authority requires more information in order to determine if the claim shall be paid.(d) Claim reimbursement from all sources shall not exceed the enrolled amount of the Qualified Loan that forms the basis for the claim, except when reasonable out-of-pocket expenses are claimed. In the event only a portion of the loan was enrolled, reimbursement of out-of-pocket expenses will be limited to the ratio of the enrolled portion to the total loan amount.(e) To make a claim, the Participating Financial Institution shall submit a claim application to the Authority which shall include the following information: (1) Name and identification number of the Participating Financial Institution.(2) Name, address, telephone number and email address of contact person.(3) Participating Financial Institution loan identification number of the Qualified Loan that is subject of the claim.(4) Loan enrollment number.(5) Original principal amount and enrollment date of the Qualified Loan.(8) Statement whether the loan is secured, and whether the Participating Financial Institution has commenced enforcement proceedings.(9) Amount of claim and breakdown of components of the claim between outstanding principal, accrued interest and reasonable out-of-pocket expenses of collection or preservation of collateral, accompanied by documentation of such expenses.(10) If two or more claims are filed simultaneously by one Participating Financial Institution, a statement of the priority of payment of the claim compared to the other claims in the event the Loss Reserve Account is not sufficient to pay all claims.(11) Certification that notice was filed with the Authority as required by this section, and certification that such charge off was made in a manner consistent with the Participating Financial Institution's usual methods for taking action on loans which are not enrolled as Qualified Loans under the Program.(12) Statement regarding claims made concerning the Qualified Loan with other government programs substantially similar to the Program--including but not limited to loan loss reserve or loan guarantee programs--including amounts of reimbursements anticipated or received. If no such claim is being made, the statement shall explain why and include an agreement by the Participating Financial Institution that no claim will be made or in the event a claim is made that some or all of any reimbursement received shall be paid to the Authority in an amount necessary to ensure that the Participating Financial Institution does not receive more than the amount allowed pursuant to subdivision (d).(13) The claim application shall be signed by a person authorized to bind the Participating Financial Institution, and shall include the signatory's printed name, title and date.(f) If a Qualified Loan suffers a loss and at the time of the Participating Financial Institution's claim there are insufficient funds in the Loss Reserve Account to cover the total amount of the claim, the Participating Financial Institution shall be able to withdraw all of the amount in the Loss Reserve Account at the time of the claim, to cover the loss to the fullest extent possible. If the Participating Financial Institution then continues making Qualified Loans under the Program and the Loss Reserve Account is replenished, the Participating Financial Institution shall be authorized to withdraw funds from the Loss Reserve Account one subsequent time in order to cover the earlier claim.(g) If, subsequent to the payment of a claim by the Authority, the Participating Financial Institution recovers from the Borrower, from liquidation of collateral or from any other source, amounts for which the Participating Financial Institution was reimbursed by the Authority, the Participating Financial Institution shall promptly pay to the Authority, for deposit in the Loss Reserve Account, the amount received, net of reasonable and customary costs of collection, that in aggregate exceeds the amount needed to fully cover the Participating Financial Institution's loss on the Qualified Loan (including the portion of a Qualified Loan which is not enrolled in the Program). Recoveries which exceed reimbursements to the Loss Reserve Account may be retained by the Participating Financial Institution.Cal. Code Regs. Tit. 4, § 10056
1. New section filed 5-4-2012 as an emergency; operative 5-4-2012 (Register 2012, No. 18). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 10-31-2012 or emergency language will be repealed by operation of law on the following day.
2. Amendment filed 7-16-2012 as an emergency; operative 7-16-2012 (Register 2012, No. 29). Pursuant to Public Resources Code section 26131 this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 1-14-2013 or emergency language will be repealed by operation of law on the following day.
3. New section, including 7-16-2012 amendments, refiled 10-29-2012 as an emergency; operative 10-29-2012 (Register 2012, No. 44). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.
4. New section, including 7-16-2012 amendments, refiled 1-28-2013 as an emergency, with additional amendments to NOTE; operative 1-28-2013 (Register 2013, No. 5). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 4-29-2013 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 1-28-2013 order, including further amendments, transmitted to OAL 4-23-2013 and filed 5-22-2013; amendments operative 5-27-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 21). Note: Authority cited: Section 26071, Public Resources Code. Reference: Sections 26073 and 26074, Public Resources Code.
1. New section filed 5-4-2012 as an emergency; operative 5-4-2012 (Register 2012, No. 18). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 10-31-2012 or emergency language will be repealed by operation of law on the following day.
2. Amendment filed 7-16-2012 as an emergency; operative 7-16-2012 (Register 2012, No. 29). Pursuant to Public Resources Code section 26131 this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 1-14-2013 or emergency language will be repealed by operation of law on the following day.
3. New section, including 7-16-2012 amendments, refiled 10-29-2012 as an emergency; operative 10-29-2012 (Register 2012, No. 44). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.
4. New section, including 7-16-2012 amendments, refiled 1-28-2013 as an emergency, with additional amendments to Note; operative 1-28-2013 (Register 2013, No. 5). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 4-29-2013 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 1-28-2013 order, including further amendments, transmitted to OAL 4-23-2013 and filed 5-22-2013; amendments operative 5-27-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 21).