Section 10091.2 - Eligible Financial Institution and Eligible Finance Lender Applications to Participate(a) An Eligible Financial Institution (EFI) or Eligible Finance Lender (EFL) seeking to become a Participating Financial Institution (PFI) or Participating Finance Lender (PFL) in the Program shall submit an enrollment application to the Authority that includes the information in this section in a form to be specified by the Authority.(b) General Application and Contact Information: The EFI or EFL must provide the following: (1) Name and address of the EFI or EFL.(2) Name, business address, business telephone number, email address, and title of contact person.(3) Name, business address, business telephone number, email address, and title of all loan officers or staff who are authorized to provide and certify data and submit loan, retail installment contract, or lease/service agreement enrollments to the Authority under the Program.(4) Type of finance company, denoting insured depository institution, insured credit union, Community Development Financial Institution, Financial Development Corporation, California Finance Lender or other.(5) A list of the counties in California where its product may be available, or an indication that the product may be available statewide.(6) Names of the regulatory agency and the insuring agency to which the EFI or EFL is accountable and license number(s), if applicable.(c) Channel Partner: The EFI or EFL must provide the name of the Eligible Channel Partner co-applicant, if applicable.(d) Proposed Product(s): The EFI or EFL must provide a description of proposed loan program including:(1) A detailed description of its loan or lease/service agreement program(s) to finance Eligible Improvements, including, but not limited to, anticipated loan product details, such as collateral required (if any), maximum and minimum loan amounts, interest rates (fixed or variable and for each term and credit tier), loan terms, fees and eligibility for renters and manufactured homes.(2) A description of underwriting criteria, including any minimum credit score requirements, maximum total debt-to-income ratio, bankruptcy limitations and other disqualifying criteria.(3) Sample transaction documentation.(4) An indication of what may be financed through the Program.(5) A comparison between the proposed product and the EFI's or EFL's typical product offerings indicating how the Loss Reserve Contribution will be utilized to provide benefits to Borrower in one or more of the following ways:(A) Lower interest rates.(C) More inclusive underwriting criteria.(D) Any other advantageous features.(6) A description of product marketing, loan origination and operational processes, including how the PFI or PFL will ensure compliance with Program rules, obtain and provide required data and certifications and submit loans for enrollment.(7) An indication of which Borrower's certifications, pursuant to Section 10091.9(e) are not pertinent and may be forgone based on the proposed program.(8) The EFI's or EFL's intent as to what it will do with the Eligible Loans, if known (e.g., hold, sell, transfer, participate), and the identity of a purchaser, if applicable.(e) Certifications: The EFI or EFL certifies the following:(1) The EFI or EFL is not subject to a cease and desist order or other regulatory sanction from the appropriate federal or state regulatory body that would impair the EFI's or EFL's ability to participate in the Program.(2) All forthcoming loan enrollment applications submitted by the PFI or PFL to the Authority meet all of the following:(A) The loan enrollment applications will be for Eligible Loans and that the Borrowers receiving the Eligible Loans will meet the minimum underwriting criteria set forth in these regulations. The Claim-Eligible Principal Amount will be limited to Eligible Improvements.(B) The Borrowers and Participating Contractors will have executed the required project certifications, the Borrowers will have executed the CHEEF Privacy Disclosures, and the PFI or PFL will have obtained them.(3) The application to participate in the Program will be signed by a person authorized to legally bind the applicant, and will include the signatory's printed name, title and date.(f) Acknowledgements and agreements: The EFI or EFL acknowledges and agrees to the following: (1) The PFI or PFL agrees that these regulations constitute a lender services agreement.(2) The PFI or PFL agrees to follow the Program rules as set forth in this Article.(3) The Authority is permitted to audit the PFI or PFL of any of its records relating to Enrolled Loans during normal business hours either remotely or on its premises, to be determined by the Authority, and to supply other information concerning Enrolled Loans as shall be requested by the Authority.(4) The Authority and the State of California will have no liability to the PFI or PFL under the Program except from funds deposited in the Loss Reserve Account(s) for the PFI or PFL.(5) To include the required information and certifications as described in Section 10091.9.(6) The PFI or PFL is solely responsible for identifying and making any and all disclosures and providing periodic reports to its Borrowers as required under applicable laws.(7) The PFI or PFL, to comply with all applicable laws, possesses and maintains all required state and federal licenses, and remains in good standing with all governmental authorities having jurisdiction over its business.(8) IOUs are not responsible for, and shall have no liability for, the following:(A) The energy improvements funded through the Enrolled Loans supported through the Loss Reserve Accounts.(B) The assessment of potential benefits and costs associated with those improvements.(C) The qualification of PFIs or PFLs.(D) The PFI's or PFL's marketing and lending policies and practices.(E) The Authority's educational and outreach activities.(g) Indemnifications: The EFI or EFL as a PFI or PFL shall indemnify, defend and hold harmless the Authority, each of the IOUs, the IOUs' affiliates and each of the IOUs' respective officers, directors, employees, agents and representatives (each of which is an express beneficiary of this indemnity) from and against any and all losses arising in connection with any claim:(1) Resulting from the negligent or unlawful acts or omissions, or willful or tortious conduct of the PFI or PFL including any failure of the PFI or PFL, or its agents, to comply with applicable laws in connection with Enrolled Loans.(2) Resulting from any error or omission by the PFI or PFL or any of its agents in the calculation or presentation of principal repayments or interest with respect to an Enrolled Loan agreement, fees and charges, the receipt and processing of payments received from Borrowers or any collection or enforcement action.(3) Alleging any breach of a representation, warranty or covenant by that PFI or PFL.(4) Alleging any misrepresentation by the PFI or PFL or its agents 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.(5) Arising from the PFI's or PFL's breach or alleged breach of the regulations and/or its confidentiality or privacy obligations under these regulations or with respect to the Program.(h) Upon 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 permit the applicant to be a PFI or PFL. The Authority's decision regarding enrollment shall be final. The Authority will notify the PFI or PFL of its decision and provide a Program Participation ID for the PFI or PFL.(i) After a PFI or PFL is enrolled in the Program, the PFI or PFL is responsible for updating the Authority with any changes to the information referenced in Section 19901.2(b)(1)-(6) above. Changes to the information referenced in Section 10091.2(b)(5) and Section 10091.2(d)(1)-(2) and Section 10091.2(d)(4)-(7) above are subject to approval by the Authority.(j) On a monthly basis, the Authority shall use the loan status data that is reported pursuant to Section 10091.11(a)(3) and (4) to assess the PFI's or PFL's loan program and the performance of its Enrolled Loans, using the following formula: (Sum of current outstanding Claim-Eligible Principal Amount for loans reported as "Charged-off" and "Past Due") / (Sum of current outstanding Claim-Eligible Principal Amount for loans reported as "Current" plus the sum of original Claim-Eligible Principal Amount for loans reported as "Paid in Full")
(1) If the resulting value is a ratio of twenty-five percent (25%) or higher for three (3) or more consecutive months, the PFI or PFL must submit written amendments to the approved loan program to the Authority. The proposed loan program amendments must be designed to reduce the rate of loan charge-offs and delinquencies for the approved loan program.(2) The Authority shall review the proposed loan program amendments within ten (10) business days of receipt.(3) If the PFI or PFL fails to submit proposed amendments, or the Authority determines that the proposed amendments will not reduce the rate of loan charge-offs and delinquencies, the Authority will suspend approval of the PFI's or PFL's approved loan program and decline to enroll Eligible Loans where the date interest rate was finalized, as specified in Section 10091.9(c)(38), is five (5) business days after the date that the PFI or PFL was notified in writing of their suspension. The PFI or PFL may continue to propose amendments pursuant to Section 10091.2(j)(1) and (2).(4) If the Authority approves the proposed amendments, the PFI's or PFL's Program participation shall resume upon the PFI's or PFL's demonstration to the Authority of the complete implementation of the approved amendments.Cal. Code Regs. Tit. 4, § 10091.2
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 subsection (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, 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 new subsections (b)-(b)(2) and subsection relettering; 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, including amendment of subsection (a)(8), transmitted to OAL 8-3-2018 and filed 9-17-2018; amendments effective 9/17/2018 pursuant to Government Code section 11343.4(b)(3) (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. Editorial correction of subsection (i) and History 10 (Register 2022, No. 25).
12. 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.
13. Certificate of Compliance as to 6-20-2022 order transmitted to OAL 8-19-2022 and filed 9/29/2022 (Register 2022, No. 39).
14. Repealer of subsection (d)(6) and subsection renumbering filed 12-22-2023 as an emergency; operative 12/22/2023 (Register 2023, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2024 or emergency language will be repealed by operation of law on the following day.
15. Change without regulatory effect amending subsection (i) filed 3-21-2024 pursuant to section 100, title 1, California Code of Regulations (Register 2024, No. 12).
16. Amendment of subsections (d)(7)-(8), (f)(5), (f)(8)(A) and (g)(4) and new subsections (j)-(j)(4) 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.
17. Refiling of 12-22-2023 and 4-15-2025 emergencies on 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.
18. Certificate of Compliance as to 6-14-2024 order transmitted to OAL 7-19-2024 and filed 8/30/2024 (Register 2024, No. 35).