Cal. Code Regs. tit. 21 § 4073

Current through Register 2024 Notice Reg. No. 45, November 8, 2024

Section 4073 - Servicing of the Loan

All funds expended under this program shall be repaid to the Department, together with any interest due. The State Controller has the right to impound, or withhold, all other State funds due the borrowing agency to satisfy this requirement.

(a) Repayment.

(1) A loan made under this chapter shall be repayable over a period established by the Department for each loan, which shall not exceed a 17-year period. The sponsor shall make payments to the Department on an annual basis, as established in the loan agreement between the sponsor and the Department, commencing one year from the date that the State Controller issues the warrant for the loan proceeds. Interest shall be computed daily on the basis of the outstanding principal.

(2) Where a loan has been made for the construction of a revenue-generating project, the sponsor shall establish a separate account within the airport's special aviation fund for the purpose of receiving revenue which would be held in trust, in an amount equal to one year's repayment of the loan. Revenue received after the first year's payment would be available to the airport for the purpose of achieving financial self-sufficiency.

(3) Nothing in these regulations shall be construed as prohibiting the sponsor from making early repayment, either in full or in part. Interest due as of the date of early payment shall be included in the early payment.

(b) Interest Rate. Interest charged for loans made under this Chapter will be at the interest rate paid by the State on its most recent issue of general obligation bonds sold prior to the date that the loan is approved.

Cal. Code Regs. Tit. 21, § 4073

1. Amendment of section and new NOTE and new Figures 1-3 and Tables 1-2 filed 6-3-2005; operative 7-3-2005 (Register 2005, No. 22).

Note: Authority cited: Section 21243, Public Utilities Code. Reference: Sections 21002 and 21602, Public Utilities Code.

1. Amendment of section and new Note and new Figures 1-3 and Tables 1-2 filed 6-3-2005; operative 7-3-2005 (Register 2005, No. 22).