SECTIONS 32420-32423 - California Statutes

FINANCIAL CODE

SECTION 32420-32423

32420. In this article "trust fund" means the government guaranteed
securities trust fund of the corporation.

32421. The finance officer shall place into the trust fund all
securities held by the corporation which carry a guarantee of
repayment issued by the Small Business Administration or guarantee of
repayment issued by any other governmental authority.

32422. According to policies and regulations which the board shall
adopt, the finance officer shall use his or her best efforts to sell
the guaranteed portion of the securities held in the trust fund to
private investors or the state.

32423. The proceeds of the sale of government guaranteed securities
shall be allocated to the accounts of the corporation in the
following manner:
(a) That portion of the proceeds of the sale of government
guaranteed securities which represents the purchase of the principal
amount of the securities shall be credited to the enterprise loan
fund of the corporation; and
(b) That portion of the proceeds of the sale of government
guaranteed securities which represents the purchase of the future
interest earnings of the securities shall be credited to the general
operating account of the corporation.