Section 91327 - Security for the Loan(a) Loans may be secured by a first trust deed on the real property of the facility upon which the work of construction is performed, or such other alternative security as the Department may find necessary to protect the financial interests of the State provided that such other security agreed upon is sufficient to afford protection of the Department's investment.(b) The Department shall not accept alternative security in lieu of a first trust deed on the real property of the facility unless:(1) The borrower applies to the Department for consideration of alternative security arrangements;(2) The borrower substantiates in writing to the Department that if the Department requires a first trust deed on the project property of the facility, the project would be economically unfeasible; and(3) The Department determines and substantiates that the project is economically unfeasible without a waiver of the requirement for a first trust deed on the project property of the facility.(c) The beneficiary of the security shall be the Department.Cal. Code Regs. Tit. 22, § 91327
1. Editorial correction adding NOTE filed 2-23-83 (Register 83, No. 9). Note: Authority cited: Sections 103, 446.2 and 446.3, Health and Safety Code; and Section 11152, Government Code. Reference: Section 13111.3, Health and Safety Code.
1. Editorial correction adding NOTE filed 2-23-83 (Register 83, No. 9).