Cal. Code Regs. tit. 4 § 10091.10

Current through Register 2024 Notice Reg. No. 49, December 6, 2024

Section 10091.10 - Claims

(a) A PFI, PFL, or Successor Servicer shall be authorized to make a claim for reimbursement for up to ninety percent (90%) of a loss from the outstanding Claim-Eligible Principal Amount prior to the liquidation of collateral or realization on personal or other financial guarantees or from other sources. The outstanding Claim-Eligible Principal Amount does not include unpaid interest, unpaid late fees, or other unpaid charges.

(b) A PFI, PFL, or Successor Servicer shall notify the Authority within sixty (60) calendar days after charging off an Enrolled Loan and include the date of the charge-off and the amount of the outstanding Total Loan Principal Amount that was charged-off.

(c) To make a claim, the PFI, PFL, or Successor Servicer shall submit a claim application to the Authority in a format approved by the Authority within one hundred eighty (180) calendar days of the date of charge-off of an Enrolled Loan. To make a claim, a PFI, PFL, or Successor Servicer must be in compliance with the Program requirements, including the reporting requirements in Section 10091.12. The claim application must include the following information:

(1) Name of the PFI, PFL, or Successor Servicer.

(2) Name, business telephone number and e-mail address of contact person.

(3) Lender internal identification number, as described in Section 10091.9(c).

(4) CHEEF Loan ID of the Enrolled Loan.

(5) An indication as to whether the Enrolled Loan is enrolled in the Program.

(6) Original Claim-Eligible Principal Amount.

(7) Original Total Loan Principal Amount.

(8) Outstanding Claim-Eligible Principal Amount at the time of charge-off.

(9) Outstanding Total Principal Amount.

(10) Charge-off amount.

(11) Amount recovered.

(12) Claim amount.

(13) Beneficiary of the claim payment, if an entity other than the PFI, PFL, or Successor Servicer.

(14) Amount of any inchoate losses.

(15) Charge-off date.

(16) If the Enrolled Loan is secured, a statement of whether the PFI, PFL or Successor Servicer has commenced enforcement proceedings.

(17) Whether any acceleration notices have been sent.

(18) If a PFI, PFL or Successor Servicer files a claim while one or more claims are already pending the Authority's review, a statement of the priority of payment of the claim compared to the other claims in the event the balance of the Loss Reserve Account is insufficient to pay all the claims.

(19) Certification that the notice was filed with the Authority as required by Section 10091.10(b), and certification that the charge-off was made in a manner consistent with the PFI, PFL or Successor Servicer's usual methods for taking action on loans that are not Enrolled Loans under the Program.

(20) The claim information shall be executed by an authorized signatory, who can bind the PFI, PFL or Successor Servicer, and shall include the signatory's printed name, title, and date.

(21) Certification that the PFI, PFL or Successor Servicer will comply with reporting requirements on recoveries, as laid out in Section 10091.10(d)-(e).

(d) All claims will be paid net of any recovery made by the PFI, PFL, or Successor Servicer prior to the filing of the claim. If, subsequent to the payment of a claim by the Authority, the PFI, PFL or Successor Servicer recovers from the Borrower, from liquidation of collateral or from any other source, amounts for which the PFI, PFL, or Successor Servicer was paid by the Authority, the PFI, PFL, or Successor Servicer shall apply the recoveries in the following order:

(1) The PFI's, PFL's, or Successor Servicer's reasonable costs of reasonable collection efforts.

(2) The PFI's, PFL's, or Successor Servicer's loss on the portion of the Claim-Eligible Principal Amount not covered by the Authority's claim payment.

(3) The PFI's, PFL's, or Successor Servicer's reimbursement to the Program Holding Account(s) for the claim paid.

(4) The PFI, PFL, or Successor Servicer may retain recoveries that exceed reimbursements to the Program Holding Account(s).

(e) The PFI, PFL, or Successor Servicer shall notify and reimburse the Authority if any recoveries are made subsequent to the submission of the claim application.

(f) The Authority shall approve claims within thirty (30) calendar days of the Authority's receipt of a completed and qualified claim request, provided, however, that the Executive Director shall be authorized to reject a claim if the Executive Director determines the representations and warranties provided by the PFI, PFL, or Successor Servicer pursuant to Section 10091.9 at the time of enrolling the Eligible Loan were false, or the PFI, PFL, or Successor Servicer is not in compliance with its obligations, including reporting obligations, under these regulations. The Authority, upon providing written notice to the PFI, PFL, or Successor Servicer, may defer the approval of claims up to an additional thirty (30) calendar days if the Authority requires more information to determine if the claim shall be paid. Prior to authorizing a disbursement from a Loss Reserve Account, the Authority may request additional documentation from the PFI, PFL, or Successor Servicer related to the Enrolled Loan.

(g) Upon the approval of a claim, the Authority shall direct the Trustee to disburse the approved claim amount within five (5) business days.

(1) Where a PFI or PFL makes its first claim request within one (1) year of enrolling its first loan in the Program, the Authority will instruct the Trustee to withdraw the approved claim amount from the appropriate Program Holding Account(s) and disburse those funds to the PFI or PFL. This claim reimbursement will not affect the PFI's or PFL's Loss Reserve Account balance. This provision shall not apply to Enrolled Loans where the servicing responsibility has been assumed by a new PFI, PFL or Successor Servicer pursuant to Section 10091.13. Where a PFI, PFL, or Successor Servicer is participating in the Program and another pilot program administered by the California Hub for Energy Efficiency Financing, the claim described in this section is not additive for that PFI, PFL, or Successor Servicer.

(2) Except as set forth in Section 10091.10(g)(1), the Authority will instruct the Trustee to withdraw the approved claim amount from the PFI, PFL, or Successor Servicer's Loss Reserve Account.

Cal. Code Regs. Tit. 4, § 10091.10

Note: Authority cited: Section 26009, Public Resources Code. Reference: Sections 26003(a)(3)(A), 26003(a)(6), 26003(a)(8)(A) and 26040, Public Resources Code.

1. New section filed 3-9-2015 as an emergency; operative 3-9-2015 (Register 2015, No. 11). A Certificate of Compliance must be transmitted to OAL by 9-8-2015 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 9-8-2015 as a deemed emergency pursuant to Public Resources Code section 26009, including amendment of subsection (g); operative 9-8-2015 (Register 2015, No. 37). A Certificate of Compliance must be transmitted to OAL by 12-7-2015 or emergency language will be repealed by operation of law on the following day.
3. New section, including 9-8-2015 amendments, refiled 12-3-2015 as a deemed emergency pursuant to Public Resources Code section 26009; operative 12-7-2015 (Register 2015, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-7-2016 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 12-3-2015 order, including further amendment of section, transmitted to OAL 3-1-2016 and filed 4-13-2016; amendments operative 4-13-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 16).
5. Amendment filed 9-5-2017 as an emergency; operative 9-5-2017 (Register 2017, No. 36). A Certificate of Compliance must be transmitted to OAL by 6-4-2018 or emergency language will be repealed by operation of law on the following day.
6. Amendment refiled 3-5-2018 as an emergency, including further amendment of section; operative 3-5-2018 (Register 2018, No. 10). A Certificate of Compliance must be transmitted to OAL by 6/4/2018 or emergency language will be repealed by operation of law on the following day.
7. Amendment refiled 5-30-2018 as an emergency; operative 6-5-2018 (Register 2018, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-4-2018 or emergency language will be repealed by operation of law on the following day.
8. Certificate of Compliance as to 5-30-2018 order transmitted to OAL 8-3-2018 and filed 9/17/2018 (Register 2018, No. 38).
9. Amendment filed 5-24-2021 as an emergency; operative 5/24/2021 (Register 2021, No. 22). Emergency expiration extended 60 days pursuant to Executive Order N-40-20 plus an additional 60 days pursuant to Executive Order N-71-20. A Certificate of Compliance must be transmitted to OAL by 3-22-2022 or emergency language will be repealed by operation of law on the following day.
10. Amendment refiled 3-17-2022 as an emergency, including further amendment of subsections (b)(2) and (c), new subsections (c)(1)-(4) and amendment of table within subsection (j); operative 3/23/2022 (Register 2022, No. 11). A Certificate of Compliance must be transmitted to OAL by 6-21-2022 or emergency language will be repealed by operation of law on the following day.
11. Refiling of 3-17-2022 order on 6-20-2022 as an emergency; operative 6/22/2022 (Register 2022, No. 25). A Certificate of Compliance must be transmitted to OAL by 9-20-2022 or emergency language will be repealed by operation of law on the following day.
12. Certificate of Compliance as to 6-20-2022 order transmitted to OAL 8-19-2022 and filed 9/29/2022 (Register 2022, No. 39).
13. Change without regulatory effect amending subsections (b)(2), (c)(2)-(3) and (j) filed 3-21-2024 pursuant to section 100, title 1, California Code of Regulations (Register 2024, No. 12).
14. Renumbering of section 10091.10 to section 10091.11 and former section 10091.9 to 10091.10, including amendment of subsections (c), (c)(3), (c)(19), (c)(21), (f) and (g)(1)-(2), filed 4-15-2024 as an emergency; operative 4/15/2024 (Register 2024, No. 16). A Certificate of Compliance must be transmitted to OAL by 10-14-2024 or emergency language will be repealed by operation of law on the following day.
15. Renumbering of section 10091.10 to section 10091.11 and former section 10091.9 to 10091.10, including amendment of subsections (c), (c)(3), (c)(19), (c)(21), (f) and (g)(1)-(2), refiled 6-14-2024 as an emergency; operative 6/20/2024 (Register 2024, No. 24). A Certificate of Compliance must be transmitted to OAL by 9-18-2024 or emergency language will be repealed by operation of law on the following day.
16. Certificate of Compliance as to 6-14-2024 order transmitted to OAL 7-19-2024 and filed 8/30/2024 (Register 2024, No. 35).