SECTIONS 91560-91562.5 - California Statutes

GOVERNMENT CODE

SECTION 91560-91562.5

91560. (a) The Legislature finds and declares that small businesses
may have difficulty establishing adequate security for bonds issued
by an authority in their behalf; that establishing common reserve
funds will help to provide reasonable security for these bonds and
will help to make the authority's services available to various small
businesses that may be otherwise unable to use them.
(b) For the purpose of establishing and maintaining the common
reserve funds it deems necessary or desirable to secure its bonds or
any issuance thereof, the commission pursuant to this section or an
authority, pursuant to its project agreements with companies, may
levy fees or other charges on, or require deposits from, companies
receiving financing for projects under this title. Prior to levying
any of these fees or charges or requiring deposits, the commission or
an authority shall adopt regulations for the operation of the common
reserve funds and governing the amounts and any payment schedule for
the fees, charges, or deposits.
(c) Subject to any prior contractual obligations to any of its
bondholders, the commission or an authority may establish one or more
common reserve funds for any or all of its bonds. The commission
shall establish its own liability limits of the common reserve fund
with respect to any single issue of bonds issued by the commission,
and each authority shall establish its liability limits of the common
reserve fund with respect to any single issue of bonds issued by the
authority subject to the approval of the commission.
(d) Each common reserve fund established pursuant to this section
shall be deposited in a special account that shall be established by
the Controller. Notwithstanding any other provision of law, all
interest or other increment earned by investment or deposit of moneys
in such an account pursuant to any provision of Part 2 (commencing
with Section 16300) of Division 4 of Title 2 or pursuant to any other
provision of law shall be credited to, and deposited in, the
account.

91561. Upon the request of an authority, the commission may act as
a pooling agent in the issuance of bonds for the benefit of small
businesses, when it is more expedient for the commission to do so, or
at the request of the local authority, or both. As a pooling agent,
the commission shall issue pooled bonds pursuant to Sections 91520,
and following, of this code, based on a combination by the
commission, or by an authority, of small business loan requests.
Pooled bond issues shall be in multiples of one million dollars
($1,000,000).

91561.3. (a) Each local authority shall be empowered to enter into
joint powers agreements with other local authorities to issue pooled
bonds in response to small business loan requests after receiving
commission approval, and pursuant to Section 11256.
(b) The commission shall be designated as the agency to administer
such agreements pursuant to Section 6506.

91561.5. "Small business" means small business as defined in
Section 14837.

91562. A small business loan issued pursuant to this chapter, shall
be for no less than seventy-five thousand dollars ($75,000), nor
more than five hundred thousand ($500,000).

91562.5. The commission shall consider small business requests on a
quarterly basis.