Section 10093.7 - Credit Enhancement(a) Establishment of Accounts. Upon the Authority's acceptance of an application from a Finance or Service Entity Applicant to be a Finance or Service Entity, the Authority shall instruct the Trustee to establish a Loss Reserve Account(s) for the Finance or Service Entity. The Loss Reserve Account(s) will be held by the Trustee and will be used to:(1) Receive and hold Loss Reserve Contributions deposited by the Authority for the benefit of a Finance or Service Entity; and(2) Pay claims in accordance with Section 10093.8.(b) At the Loss Reserve Account Representative's request, the Authority will establish up to three Loss Reserve Accounts for the Finance or Service Entity.(c) Contributions to Loss Reserve Accounts (1) For each of the Finance or Service Entity's Enrolled Efficiency Agreements, the Authority shall direct the Trustee to transfer a Loss Reserve Contribution from the Program Holding Account to the Loss Reserve Account of that Finance or Service Entity.(2) 15% of the Claim-Eligible Financed Amount will be contributed for each Enrolled Efficiency Agreement. However, for each Finance or Service Entity, the first and second Enrolled Efficiency Agreement will receive a contribution of 30% of the Claim-Eligible Financed Amount. In all circumstances, the Claim-Eligible Financed Amount must not exceed $200,000 per Enrolled Efficiency Agreement.
(3) If the Primary Finance or Service Entity notifies the Authority pursuant to Section 10093.2(c)(6)(G) that it determined not to fund the Enrolled Efficiency Agreement, the Authority will recover the Loss Reserve Contribution for that Enrolled Efficiency Agreement by transferring the funds back to the Program Holding Account and the financing or service agreement will be removed from the Program.(4) If the Primary Finance or Service Entity notifies the Authority pursuant to Section 10093.2(c)(6)(G) that it determined to fund less than the Claim-Eligible Financed Amount as reported at the time of submittal, the Authority will recover any excess contribution to the Loss Reserve Account by transferring the funds back to the Program Holding Account.(d) Annual Rebalance. Once per fiscal year ending June 30, the Authority shall instruct the Trustee to rebalance a Finance or Service Entity's Loss Reserve Account, if necessary, and move funds from the Finance or Service Entity's Loss Reserve Account into the Program Holding Account.(e) Methodology. The initial rebalance amount will be the sum of the original Loss Reserve Contributions associated with Enrolled Efficiency Agreements that were paid off in full during the fiscal year.(1) If the Finance or Service Entity did not make any claims as provided under Section 10093.8 during the fiscal year, the initial rebalance amount will not be changed and the funds will be transferred from the Finance or Service Entity's Loss Reserve Account to the Program Holding Account.(2) If the Finance or Service Entity made one or more claims as provided under Section 10093.8 during the fiscal year, and the total claim amount is less than the initial rebalance amount, the final rebalance amount will equal the initial rebalance amount less the claim(s) amount.(3) If the Finance or Service Entity made one or more claims as provided under Section 10093.8 during the fiscal year, and the total claim amount is more than the initial rebalance amount, there will be no rebalance.Cal. Code Regs. Tit. 4, § 10093.7
1. New section filed 5-9-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 5-9-2019 (Register 2019, No. 19). A Certificate of Compliance must be transmitted to OAL by 11-5-2019 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-31-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 11-6-2019 pursuant to Government Code section 11346.1(d) (Register 2019, No. 44). A Certificate of Compliance must be transmitted to OAL by 2-4-2020 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 1-30-2020 as a deemed emergency pursuant to Public Resources Code section 26009; operative 2-5-2020 pursuant to Government Code section 11346.1(d) (Register 2020, No. 5). A Certificate of Compliance must be transmitted to OAL by 5-5-2020 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 1-30-2020 order, including amendment of section, transmitted to OAL 5-5-2020 and filed 6-17-2020; amendments operative 6-17-2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 25). Note: Authority cited: Sections 26006 and 26009, Public Resources Code. Reference: Sections 26002, 26002.5, 26003, 26006, 26011 and 26040, Public Resources Code.
1. New section filed 5-9-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 5/9/2019 (Register 2019, No. 19). A Certificate of Compliance must be transmitted to OAL by 11-5-2019 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-31-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 11/6/2019 pursuant to Government Code section 11346.1(d) (Register 2019, No. 44). A Certificate of Compliance must be transmitted to OAL by 2-4-2020 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 1-30-2020 as a deemed emergency pursuant to Public Resources Code section 26009; operative 2/5/2020 pursuant to Government Code section 11346.1(d) (Register 2020, No. 5). A Certificate of Compliance must be transmitted to OAL by 5-5-2020 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 1-30-2020 order, including amendment of section, transmitted to OAL 5-5-2020 and filed 6-17-2020; amendments operative 6/17/2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 25).