SECTIONS 14061-14069.6 - California Statutes

CORPORATIONS CODE

SECTION 14061-14069.6

14061. Every corporation shall provide for and maintain a central
staff to perform all administrative requirements of the corporation
including all those functions required of a corporation by the
director.

14062. Reasonable costs incurred by a corporation in the creation
and maintenance of a central staff shall be paid to the corporation
from state funds including a portion of the interest earned on the
expansion fund and the corporation's trust fund account, if the
corporation has a trust fund account, otherwise, on the expansion
fund.

14064. The use of state funds paid out to the trust fund and the
return on those funds from investment pursuant to Section 14038 is
conditional pursuant to Sections 14028 and 14039. Each corporation
shall enter into a written signed agreement with the state at the
beginning of each fiscal year. The agreement shall govern the
activities in which the corporations engage, the investment of state
funds and its return, and the budgeted administrative expenses the
corporations may incur. In the event the state and corporation do not
reach an agreement, or the state finds the corporation has violated
the terms of an active agreement, the state may take action under
Sections 14028 and 14039 or other action as appropriate. In the event
the state and corporation do not reach agreement or the state finds
the corporation has violated the terms of an active agreement, the
corporation shall have no authority to withdraw or encumber the trust
fund or the return of those funds by the issuance of guarantees, by
incurring expenses against the fund and its return in any manner
whatsoever, and the state may take action under Sections 14028 and
14039 or other action as appropriate. Any guarantee or other
encumbrance made by the corporation in violation of this section
shall be null and void, and neither the state nor the trust fund will
be liable therefor.

14065. The corporations shall report to the director, or his or her
designated representative, all statistical and other reports
required by this part, responses to audit reports, budget
requirements, invoices submitted for payment by the state, and
information concerning loans made or guaranteed.

14066. The corporation shall make a report to the director, as of
the close of business on June 30, of each year describing the
corporation's activities and any additional information requested by
the director, on or before August 1 of each year.

14067. The office may establish a program through which the
corporations may assist small farms and rural and
agricultural-related businesses with respect to financing and other
assistance.

14068. To implement its responsibilities, the corporation shall
undertake a program that shall include, but not be limited to, the
following:
(a) Develop and implement a program of outreach to low-resource
businesses. The corporations located in rural areas shall give
priority to low-resource farmers, rural, and agriculturally related
businesses.
(b) Work with other organizations and lenders to locate, identify,
and assist those unable to obtain credit through conventional
sources because of reasons such as low equity, inadequate collateral,
unacceptable legal structure (such as a co-op or nonprofit
organization), management inadequacies, and language problems.
(c) To the extent possible, bring all possible financial resources
(low-interest lenders, BIDCOs, MESBICs, other guarantors, etc.) to
bear on borrower's problems.
(d) Provide assistance to businesses receiving loans or guarantees
that will maximize the probability of loan repayment.
(e) Develop and implement a program for increasing program
resources through private sector involvement and nonstate funds.
(f) Develop a program for collecting and liquidating defaulted
loans so that the corporations can qualify to become full-service
lenders under the Small Business Administration. Corporations located
in rural areas shall, in addition, try to qualify for lender status
under the Farmers Home Administration.
(g) Become an agent for other lenders and guarantors.

14069. In all their state-funded programs, the corporations shall,
to the extent practicable, be complementary to, and not competitive
with, commercial lenders and other state and federal programs.

14069.6. The Trade and Commerce Agency shall contract with an
entity to conduct an independent statewide assessment of capital
needs in California, as they pertain to the Small Business Financial
Development Corporation program established pursuant to this part,
and shall establish minimum standards for the siting of corporations,
and determine and rank the regions and subregions in California most
underserved by the financial development corporations. The
determinations and rankings shall be final upon approval of the
Office of Small Business. The assessment and the establishment of
standards shall be completed no later than June 30, 1998.