Cal. Code Regs. tit. 4 § 10091.14

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

Section 10091.14 - Termination and Withdrawal

(a) The Executive Director shall be authorized to terminate the participation of a PFI, PFL or Successor Servicer in the Program, by notice in writing, upon the occurrence of any of the following:

(1) Entry of a cease and desist order, regulatory sanctions or any other action against the PFI, PFL or Successor Servicer by a regulatory agency that may impair its ability to participate in the Program.

(2) Failure of the PFI, PFL or Successor Servicer to abide by the Law or this Article.

(3) Failure of the PFI or PFL to enroll any Eligible Loans under the Program for a period of one (1) year.

(4) Failure of the Successor Servicer to undertake the servicing of any Enrolled Loans purchased pursuant to Section 10091.13 for a period of one (1) year.

(5) Failure of the PFI, PFL or Successor Servicer to report to the Authority pursuant to Section 10091.12 for sixty (60) calendar days.

(6) Provision of false or misleading information regarding the PFI, PFL or Successor Servicer to the Authority, or the failure to provide the Authority with a notice of material changes in the submitted information regarding the PFI, PFL or Successor Servicer.

(b) A PFI, PFL or Successor Servicer may withdraw from the Program after giving written notice to the Authority.

(c) The terminated or withdrawn PFI, PFL or Successor Servicer shall not be authorized to enroll any further Eligible Loans.

(d) Upon termination or withdrawal, the PFI, PFL or Successor Servicer must submit a written notice to the Authority electing either of the following options:

(1) That the PFI, PFL or Successor Servicer's Loss Reserve Account(s) shall continue in existence to secure all Enrolled Loans as described in Sections 10091.7 and 10091.9.

(A) If the PFI, PFL or Successor Servicer opts for the Authority to continue to maintain its Loss Reserve Account(s), it must continue to report on all Enrolled Loans pursuant to Section 10091.12.

(B) If a PFI, PFL or Successor Servicer fails to report to the Authority pursuant to Section 10091.12 for sixty (60) calendar days, the remaining balance in the PFI's, PFL's or Successor Servicer's Loss Reserve Account(s) may be distributed to the appropriate Program Holding Account(s).

(2) That the PFI, PFL or Successor Servicer waives any further interest in the Loss Reserve Account(s) and the reason for the waiver, including for the reason that all Enrolled Loans covered by the Loss Reserve Account have been repaid or sold to a different PFI's, PFL's or Successor Servicer's portfolio. The remaining balance in the PFI, PFL or Successor Servicer's Loss Reserve Account(s) shall be distributed to the appropriate PFI, PFL or Successor Servicer Loss Reserve Account(s) or appropriate Program Holding Account(s).

Cal. Code Regs. Tit. 4, § 10091.14

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; 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 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 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; 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; 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. Renumbering of section 10091.14 to section 10091.15 and former section 10091.13 to 10091.14, including amendment of section, 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.
14. Renumbering of section 10091.14 to section 10091.15 and former section 10091.13 to 10091.14, including amendment of section, 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.
15. Certificate of Compliance as to 6-14-2024 order transmitted to OAL 7-19-2024 and filed 8/30/2024 (Register 2024, No. 35).