Section 10091.13 - Sale of Enrolled Loans(a) A PFI or PFL may sell, transfer or assign the associated repayments of an Enrolled Loan in whole or in part, or portfolio of Enrolled Loans in whole or in part, at its discretion. In those cases, the PFI or PFL will do all of the following: (1) Retain all reporting obligations relative to participation in the Program as set forth in Section 10091.12, unless a new servicer has agreed to do so pursuant to Section 10091.13(b).(2) Remain the sole entity that can file a claim for reimbursement from the loss reserve pursuant to Section 10091.10 unless a new servicer has agreed to do so pursuant to Section 10091.13(b).(3) Report the sale to the Authority in accordance with the monthly reporting outlined in Section 10091.12(a) unless the PFI or PFL has disclosed on its Application to the Program that every Enrolled Loan will be sold, in the same manner, to the same purchaser(s).(b) A PFI, PFL, Eligible Financial Institution or Eligible Finance Lender approved to be a Successor Servicer pursuant to Section 10091.13(c) may also assume new servicing responsibility for existing Enrolled Loans. In those cases, all of the following requirements:(1) The original PFI or PFL will report the change in servicing to the Authority at least ten (10) business days prior to the transfer of servicing. That notification shall include a listing of all Enrolled Loans subject to the transfer.(2) After the notification pursuant to Section 10091.13(b)(1) and prior to the transfer of Loss Reserve Contributions for all listed Enrolled Loans, the new servicer shall notify the Authority in writing that the new servicer agrees to assume the reporting obligations for the Enrolled Loan(s) pursuant to Section 10091.12, and will be responsible for filing any claims pursuant to Section 10091.10.(3) The Authority will instruct the Trustee to transfer the corresponding Loss Reserve Contributions for the purchased Enrolled Loan(s) from the original PFI's or PFL's Loss Reserve Account to the Loss Reserve Account of the new PFI, PFL or Successor Servicer.(c) An Eligible Financial Institution or Eligible Finance Lender seeking to become a Successor Servicer will submit an enrollment application, in a form specified by the Authority, to the Authority that includes the following:(1) Name and address of the Eligible Financial Institution or Eligible Finance Lender.(2) Name, business address, business telephone number, e-mail address and title of contact person.(3) Type of Eligible Financial Institution or Eligible Finance Lender, denoting insured depository institution, insured credit union, community development financial institution or California Finance Lender or other.(4) Names of the regulatory agency and the insuring agency to which the Eligible Financial Institution or Eligible Finance Lender is accountable and license number(s), if applicable.(5) Certification that the Eligible Financial Institution or Eligible Finance Lender is not subject to a cease and desist order or other regulatory sanction from the appropriate federal or state regulatory body that would impair its ability to participate in the Program.(6) The Eligible Financial Institution or Eligible Finance Lender's agreement to follow the Program regulations as set forth in this Article.(7) The Eligible Financial Institution's or Eligible Finance Lender's agreement to permit an audit by the Authority of any of its records relating to Enrolled Loans during normal business hours either remotely or on its premises, and to supply any other information concerning Enrolled Loans as shall be requested by the Authority.(8) The Eligible Financial Institution's or Eligible Finance Lender's acknowledgment that the Authority and the State will have no liability to it under the Program except from funds deposited in its Loss Reserve Account(s) pursuant to Section 10091.13(b)(3).(9) An acknowledgement and agreement that these regulations constitute a lender services agreement.(10) The Eligible Financial Institution's or Eligible Finance Lender's agreement to and acknowledgement of the following, upon enrollment in the Program:(A) The Successor Servicer is solely responsible for identifying and making any and all disclosures and providing periodic reports to its borrowers as required under applicable laws.(B) The Successor Servicer shall comply with all applicable laws, possess and maintain all required state and federal licenses and remain in good standing with all governmental authorities having jurisdiction over its business.(C) The IOUs are third-party beneficiaries of the lender services agreement and may pursue their rights against the Successor Servicer individually. Alternatively, any IOU may, in its sole discretion, authorize the Authority or another IOU to pursue those rights, including by instituting legal proceedings or alternative dispute resolution proceedings, on its behalf.(D) The Successor Servicer shall indemnify, defend and hold harmless the Authority, each of the IOUs, their affiliates and each of their respective officers, directors, employees, agents and representatives from and against any and all losses arising in connection with any claim that is any of the following: (i) Resulting from the negligent or unlawful acts or omissions, or willful or tortious conduct of a Successor Servicer, including any failure of the Successor Servicer, or its agents, to comply with the applicable laws in connection with Enrolled Loans.(ii) Resulting from any error or omission by the Successor Servicer or any third party in the calculation or presentation of Enrolled Loan-related interest, fees and charges, the receipt and processing of payments received from Borrowers or any collection or enforcement action.(iii) Alleging any misrepresentation with respect to the energy impacts to be achieved in connection with an Enrolled Loan, or any failure or deficiency in the products, materials or work supplied to a Borrower in connection with an Enrolled Loan.(iv) Arising from the Successor Servicer's failure or alleged failure to comply with the provisions of the regulations and/or its confidentiality or privacy obligations.(E) The Successor Servicer acknowledges that the IOUs are not responsible for, and shall have no liability for, any of the following:(i) The energy improvements funded through the Enrolled Loans supported through the Loss Reserve Accounts.(ii) The assessment of potential benefits and costs associated with those improvements.(iii) The qualification of PFIs, PFLs or Successor Servicers.(iv) The PFI's, PFL's, or Successor Servicer's marketing and lending policies and practices.(v) The Authority's educational and outreach activities.(11) The application shall be signed by a person authorized to legally bind the Successor Servicer, and shall include the signatory's printed name, title and date.(12) Eligible Finance Lenders seeking to enroll as a Successor Servicer must also submit evidence of compliance with the additional requirements specified in Section 10091.3(b), (c), and (d)(4)-(5), as well as Section 10091.2(e)(3). The EFL must also agree to the representations in Section 10091.3(e).(d) Upon the receipt of a completed application and within ten (10) business days, the Authority will review and determine whether additional information is required or whether the application is sufficient to enroll the applicant as a Successor Servicer. The Authority's decision regarding enrollment shall be final. The Authority will notify the Successor Servicer of its decision and provide a PFI, PFL, or Successor Servicer's Program-Participation ID for the Successor Servicer.(e) The Successor Servicer shall be subject to the provisions outlined in Section 10091.2(j).Cal. Code Regs. Tit. 4, § 10091.13
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.
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 subsections (a)(1)-(b) and (c)(4), new subsection (c)(5) and redesignation and amendment of former subsection (d) as new subsections (c)(7)-(c)(7)(B); 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 transmitted to OAL 3-1-2016 and filed 4-13-2016 (Register 2016, No. 16).
5. Amendment of subsection (a)(2) filed 3-5-2018 as an emergency; 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.
6. Amendment of subsection (a)(2) filed 3-5-2018 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.
7. Certificate of Compliance as to 5-30-2018 order transmitted to OAL 8-3-2018 and filed 9/17/2018 (Register 2018, No. 38).
8. 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.
9. Amendment refiled 3-17-2022 as an emergency, including further amendment of subsections (b) and (c)(7)(B); 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.
10. 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.
11. Certificate of Compliance as to 6-20-2022 order transmitted to OAL 8-19-2022 and filed 9/29/2022 (Register 2022, No. 39).
12. Renumbering of section 10091.13 to section 10091.14 and former section 10091.12 to 10091.13, including amendment of subsections (a)(1)-(3), (b), (b)(2), (c)(8), (c)(10)(D)(iii), (c)(10)(E)(i) and new subsection (e), 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.
13. Renumbering of section 10091.13 to section 10091.14 and former section 10091.12 to 10091.13, including amendment of subsections (a)(1)-(3), (b), (b)(2), (c)(8), (c)(10)(D)(iii), (c)(10)(E)(i) and new subsection (e), 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.
14. Certificate of Compliance as to 6-14-2024 order transmitted to OAL 7-19-2024 and filed 8/30/2024 (Register 2024, No. 35).