SECTIONS 14055-14060.6 - California Statutes

CORPORATIONS CODE

SECTION 14055-14060.6

14055. The corporate powers of a corporation shall be exercised by
the board of directors.

14056. A request for proposal for selection of a corporation shall
require the winning bidder to adopt or amend its bylaws to state
that:
(a) A person may not serve on a board of directors who is not a
resident of or person conducting business in the service area
described in the articles of incorporation.
(b) Each board of directors shall include representatives from all
of the following:
(1) The financial community.
(2) The business community.
(3) The economically disadvantaged.
(c) Not more than one employee of the corporation may serve on the
board of directors at any one time.
(d) A person who has a financial interest related to a matter over
which the board has authority may not make, participate in making,
or in any way attempt to influence that matter.

14057. If any director ceases to meet the qualifications
established in Section 14056, he or she shall immediately vacate his
or her position as a director and such position shall be deemed
vacant.

14058. If any vacancy occurs in the elective membership of the
board of directors through death, resignation, or otherwise, the
remaining directors shall elect a person representing the appropriate
category to fill the vacancy for the unexpired term.

14059. Unless delegated to its loan committee, the corporation's
board of directors, upon a recommendation from its loan committee:
(a) Shall emphasize consideration to applications that will
increase employment of disadvantaged, disabled, or unemployed
persons, or increase employment of youth residing in areas of high
youth unemployment and high youth delinquency.
(b) Shall give consideration to applications from traditional and
safety-net providers of Medi-Cal services that will promote access to
quality medical care for individuals enrolled in Medi-Cal managed
health care networks that are contracting with or owned or operated
by a county board of supervisors, a county health commission or a
county health authority organized pursuant to Sections 14018.7,
14087.31, 14087.35, 14087.36, 14087.38 or 14087.9605 of the Welfare
and Institutions Code.
(c) Shall not grant a loan or guarantee unless it determines that
the conditions of Section 14071 are satisfied.

14060. (a) A corporation shall establish one or more loan
committees, each of which shall be composed of five or more persons,
a majority of whom shall be experienced in banking and lending
operations.
(b) A loan committee shall review applications to the corporation
for a loan or guarantee and shall do each of the following:
(1) Determine the feasibility of the proposed transaction. The
loan committee shall recommend approval of the application only upon
a determination that there is a reasonable chance that the loan will
be repaid.
(2) On the basis of that determination, recommend to the board of
directors any action that the loan committee deems appropriate under
the circumstances, or, in the event that approval authority has been
delegated to the loan committee by the board of directors, approve or
disapprove the loan application.
(c) A loan committee shall expeditiously act to accept or reject
loan applications.
(d) A person who has a financial interest related to a matter over
which the loan committee has authority may not make, participate in
making, or in any way attempt to influence that matter.

14060.5. State funds may not be used to finance an expense incurred
by a corporation in a location not approved pursuant to a statewide
plan. The prohibition against use of state funds also applies to the
location of satellite offices, and the area served from a corporation
office.

14060.6. (a) The Legislature finds and declares that the Small
Business Loan Guarantee Program has enabled participating small
businesses that do not qualify for conventional business loans or
Small Business Administration loans to secure funds to expand their
businesses. These small businesses would not have been able to expand
their businesses in the absence of the program. The program has also
provided valuable technical assistance to small businesses to ensure
growth and stability. The study commissioned by Section 14069.6, as
added by Chapter 919 of the Statutes of 1997, documented the return
on investment of the program and the need for its services. The value
of the program has also been recognized by the Governor through
proposals contained in the May Revision to the Budget Act of 2000 for
the 2000-01 fiscal year.
(b) Notwithstanding Section 14060.5, the Business, Transportation
and Housing Agency shall establish new small business financial
development corporations pursuant to the procedures otherwise
established by this chapter in the following areas:
(1) San Jose.
(2) Santa Ana.
(3) San Fernando Valley.
(4) Ontario.
(c) Upon an appropriation in the annual Budget Act for this
purpose, the Secretary of Business, Transportation and Housing shall
establish a small business financial development corporation in
southeast Los Angeles.
(d) Each of the small business financial development corporations,
upon the recommendation of the board and at least once each year,
shall make a presentation and overview of the corporation's business
operations to the board.