Section 44559.1 - DefinitionsAs used in this article, unless the context requires otherwise, all of the following terms have the following meanings:
(a) "Authority" means the California Pollution Control Financing Authority.(b) "California Capital Access Fund" means a fund created within the authority to be used for purposes of the program.(c) "Executive director" means the Executive Director of the California Pollution Control Financing Authority.(d)(1) "Financial institution" means a federal- or state-chartered bank, savings association, credit union, not-for-profit community development financial institution certified under Part 1805 (commencing with Section 1805.100) of Chapter XVIII of Title 12 of the Code of Federal Regulations, or a consortium of these entities. A consortium of those entities may include a nonfinancial corporation, if the percentage of capitalization by all nonfinancial corporations in the consortium does not exceed 49 percent.(2)(A) "Financial institution" also includes a lending institution that has executed a participation agreement with the Small Business Administration under the guaranteed loan program pursuant to Part 120 (commencing with Section 120.1) of Chapter I of Title 13 of the Code of Federal Regulations and meets the requirements of Section 120.410 of Chapter I of Title 13 of the Code of Federal Regulations, a small business investment company licensed pursuant to Part 107 (commencing with Section 107.20) of Chapter I of Title 13 of the Code of Federal Regulations, and a small business financial development corporation, as defined in Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of Title 1 of the Corporations Code, or microbusiness lender, as defined in Section 12100 of the Government Code, that meets standards that shall be established by the authority. For loans where all or part of the fees and matching contributions are paid by an entity participating in the program pursuant to subdivision (e) of Section 44559.2, "financial institution" also includes financial lenders, as defined in Section 22009 of the Financial Code, making commercial loans, as defined in Section 22502 of the Financial Code.(B) A financial institution described in this paragraph shall be domiciled or have its principal office in the State of California.(3) "Financial institution" also includes an insured depository institution, insured credit union, or community development financial institution, as these terms are defined in Section 4702 of Title 12 of the United States Code.(e) "Loss reserve account" means an account in the State Treasury or any financial institution that is established and maintained by the authority for the benefit of a financial institution participating in the Capital Access Loan Program established pursuant to this article for the purposes of the following: (1) Depositing all required fees paid by the participating financial institution and the qualified business.(2) Depositing contributions made by the state and, if applicable, the federal government or other sources.(3) Covering losses on enrolled qualified loans sustained by the participating financial institution by disbursing funds accumulated in the loss reserve account.(f) "Participating financial institution" means a financial institution that has been approved by the authority to enroll qualified loans in the program and has agreed to all terms and conditions set forth in this article and as may be required by any applicable federal law providing matching funding.(g) "Passive real estate ownership" means ownership of real estate for the purpose of deriving income from speculation, trade, or rental, but does not include any of the following:(1) The ownership of that portion of real estate being used or intended to be used for the operation of the business of the owner of the real estate.(2) The ownership of real estate for the purpose of construction or renovation, until the completion of the construction or renovation phase.(h) "Program" means the Capital Access Loan Program created pursuant to this article.(i) "Qualified business" means a small business concern that meets both of the following criteria, regardless of whether the small business concern has operations that affect the environment:(1) It is a corporation, partnership, cooperative, or other entity, whether that entity is a nonprofit entity or an entity established for profit, that is authorized to conduct business in the state.(2) It has its primary business location within the boundaries of the state.(j)(1) "Qualified loan" means a loan or a portion of a loan made by a participating financial institution to a qualified business for any business activity that has its primary economic effect in California. A qualified loan may be made in the form of a line of credit, in which case the participating financial institution shall specify the amount of the line of credit to be covered under the program, which may be equal to the maximum commitment under the line of credit or an amount that is less than that maximum commitment. A qualified loan made under the program may be made with the interest rates, fees, and other terms and conditions agreed upon by the participating financial institution and the borrower.(2) "Qualified loan" does not include any of the following:(A) A loan for the construction or purchase of residential housing.(B) A loan to finance passive real estate ownership.(C) A loan for the refinancing of an existing loan when and to the extent that the outstanding balance is not increased.(D) A loan, the proceeds of which will be used in any manner that could cause the interest on any bonds previously issued by the authority to become subject to federal income tax.(k) "Severely affected community" means any area classified as an enterprise zone pursuant to the Enterprise Zone Act (Chapter 12.8 (commencing with Section 7070) of Division 7 of Title 1 of the Government Code), any area, as designated by the executive director, contiguous to the boundaries of a military base designated for closure pursuant to Section 2687 of Title 10 of the United States Code, as amended, and any other comparable economically distressed geographic area so designated by the executive director from time to time.(l) "Small Business Assistance Fund" means a fund created within the authority pursuant to Section 44548.(m) "Small business concern" has the same meaning as in Section 632 of Title 15 of the United States Code, or as otherwise provided in regulations of the authority.Ca. Health and Saf. Code § 44559.1
Amended by Stats 2014 ch 132 (AB 2749),s 9, eff. 1/1/2015.Amended by Stats 2011 ch 484 (AB 981),s 1.5, eff. 1/1/2012.Amended by Stats 2011 ch 483 (AB 901),s 2, eff. 1/1/2012.Amended by Stats 2009 ch 643 (SB 832),s 30, eff. 11/2/2009.Amended by Stats 2001 ch 160 (AB 29), s 3, eff. 8/8/2001.Amended by Stats 2000 ch 915 (SB 1986), s 12.5, eff. 1/1/2001.Previously Amended October 10, 1999 (Bill Number: SB 1119) (Chapter 756). See Stats 2000 ch 915 (SB 1986), s 18.