PART 4. BOND AND LOAN INSURANCE [51600. - 51687.]

Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4.

§§ 51600–51687 · 53 sections

1. CHAPTER 1. General Provisions and Definitions §§ 51600–51603 · 5 sections

   • § 51600 The Legislature finds and declares as follows: (a) For reasons of prudent investment policy, California’s public and private lending institutions are not…
   • § 51601 It is the intent of the Legislature in enacting this part to establish programs of bond and loan insurance for the following purposes: (a) To encourage…
   • § 51601.5 The Legislature finds and declares the following: The California Housing Finance Agency, in administering the mortgage guaranty insurance program, as it is…
   • § 51602 (a) The agency shall require that occupancy of housing for which a loan is insured pursuant to this part shall be open to all regardless of any basis listed in…
   • § 51603 (a) Unless the context otherwise requires, the definitions contained in this chapter shall govern the construction of this part. These definitions shall be in…
2. CHAPTER 2. Administration §§ 51610–51643.5 · 22 sections

   • § 51610 (a) The agency shall, with respect to the implementation of this part, and notwithstanding any other provision of law, have the general powers set forth in…
   • § 51611 (a) The California Housing Loan Insurance Fund is hereby created in the State Treasury. (b) The California Housing Insurance Fund is hereby renamed the…
   • § 51614 (a) The agency is hereby vested with full power, authority, and jurisdiction over the insurance fund. The agency may perform all acts necessary or convenient…
   • § 51615 (a) Division 10 (commencing with Section 7920.000) of Title 1 of, and Article 9 (commencing with Section 11120) of Chapter 1 of, Chapter 3.5 (commencing with…
   • § 51616 The state shall not be liable beyond the assets of the insurance fund for any obligations in connection therewith.
   • § 51620 In conducting the business and affairs of the insurance fund, the executive director may do any of the following: (a) Enter into contracts of insurance. (b)…
   • § 51622 (a) The agency may contract with any private person or public agency for review of the administration of this part and for assistance in implementing this…
   • § 51623 (a) The California Housing Loan Insurance Fund, as provided for pursuant to Section 51653 as it read prior to the effective date of the act that adds this…
   • § 51624 (a) The agency shall prepare a preliminary budget for the agency’s activities under this part on or before December 1 of each year for the ensuing fiscal year,…
   • § 51625 (a) The agency shall cause all moneys in the insurance fund which are in excess of current requirements to be invested and reinvested, from time to time, in…
   • § 51626 The insurance fund shall be organized as a public enterprise fund.
   • § 51627 The assets of the insurance fund shall be applicable to the payment of losses sustained on account of insurance and to the payment of the salaries and other…
   • § 51628 The agency shall, after a reasonable time during which it may establish a business, be competitive with other insurers, and it is the intent of the Legislature…
   • § 51632 Claims arising out of activities of the agency on behalf of the insurance fund pursuant to this part are exempted from the provisions of Part 3 (commencing…
   • § 51636 Except as provided in this part, the agency, on behalf of the insurance fund pursuant to this part, shall not be subject to the provisions of the Government…
   • § 51637 With respect to the administration of the insurance fund, the agency shall be subject to the provisions of Chapter 10.3 (commencing with Section 3512) of…
   • § 51639 The agency shall establish reserve accounts for unearned premiums, losses, and potential catastrophic losses caused by economic cycles. The agency shall not…
   • § 51640 There is hereby continued in existence a bond insurance reserve account in the insurance fund to secure commitments under contracts to insure bonds. The agency…
   • § 51641 The agency may create other accounts within the insurance fund as it deems are necessary or convenient to carry out the purposes of this part.
   • § 51642 (a) The obligation of the agency and of the state to pay any insurance benefit pursuant to contracts of insurance insuring loans or bonds shall not exceed…
   • § 51643 The agency shall not be required to pay any tax or assessment on any property owned by the fund or upon the income therefrom.
   • § 51643.5 (a) The agency shall be subject to, and comply with, the same reserve certification requirements as mortgage guaranty insurers who are licensed pursuant to…
3. CHAPTER 3. Program Priorities §§ 51645–51648 · 3 sections

   • § 51645 The agency shall establish priorities for the allocation of loan-insurance assistance in accordance with the purposes and general provisions of Chapter 2…
   • § 51647 The agency shall establish and maintain separate accounts in the insurance fund for a single-family mortgage guaranty insurance program and a multifamily…
   • § 51648 While maintaining the actuarial soundness of the fund, the agency shall make efforts to do both of the following: (a) Equitably distribute insurance based on a…
4. CHAPTER 4. Loan Insurance §§ 51650–51662 · 13 sections

   • § 51650 (a) (1) To be qualified for loan insurance, a borrower shall be, or by reason of a loan insured pursuant to this part shall become, the owner of a multifamily…
   • § 51651 (a) The agency shall specify the percentage of the outstanding principal indebtedness that may be insured under this part with respect to each category of loan…
   • § 51652 Loans insured under this part shall meet all of the following requirements: (a) The loans shall be made for a period acceptable to the agency not to exceed 40…
   • § 51653 Notwithstanding any other provision of law, any rental housing development which is financed from mortgages insured pursuant to this part is exempt from both…
   • § 51654 The agency may provide insurance pursuant to this part for all of the following: (a) Loans for residential structures that will be occupied primarily by…
   • § 51655 Subject to this part, the agency may insure or guarantee loans made by qualified mortgage lenders for the purposes described in Section 51320.
   • § 51656 Notwithstanding any other provision of this part, the agency may establish a program of insuring reverse mortgages as authorized by resolution of the board.
   • § 51657 (a) The agency shall establish, and may from time to time revise, after public hearings, a schedule of insurance premium rates. The premiums may vary according…
   • § 51658 (a) The agency shall establish procedures to be followed by approved lending institutions in the event of default on a loan insured under this part. The agency…
   • § 51659 In the event of a default on an insured loan not secured by a first mortgage, the agency may, in lieu of proceeding under Section 51658, acquire the insured…
   • § 51660 The agency may initiate programs of coinsurance or reinsurance with, and may procure reinsurance from, any state agency, local agency, agency of the United…
   • § 51661 The agency may provide for, and require attendance at, homeownership counseling and training courses as a condition to the insurance of loans for the purchase…
   • § 51662 The agency may commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract of insurance, or any other agreement. The…
5. CHAPTER 5. Bond Insurance §§ 51670–51671 · 2 sections

   • § 51670 (a) The agency may insure bonds issued by state or local agencies, or other types of issuers approved by the board of directors of the agency, to finance or…
   • § 51671 The agency may insure bonds pursuant to this chapter only if it determines that the proceeds of the bonds will be utilized, to the maximum extent feasible, for…
6. CHAPTER 6. Loan Loss Guarantee Program §§ 51680–51687 · 8 sections

   • § 51680 The agency may administer a loan loss guarantee program in order to induce private lenders to make construction loans for seismic rehabilitation improvements…
   • § 51681 (a) Except as provided in subdivision (b), the agency shall only issue rehabilitation loan loss guarantees on single-family homes or on buildings with five or…
   • § 51683 The agency may issue a loan loss guarantee in the amount of 25 percent of the actual loss of a loan guaranteed under this section. The fund may not guarantee…
   • § 51684 (a) The agency shall collect a premium for a loan loss guarantee as provided in Section 51657. All premiums shall be deposited in the Seismic Rehabilitation…
   • § 51685 Moneys transferred to the insurance fund under this section may be used to create reserves for loan loss guarantees authorized by this chapter and for the…
   • § 51685.5 (a) Notwithstanding any other provision of law, the California Housing Insurance Fund may borrow one million eight hundred thousand dollars ($1,800,000) from…
   • § 51686 In addition to the powers expressly granted by this chapter, the agency shall have all the powers granted under this part in administering this program which…
   • § 51687 This chapter shall be inoperative if moneys are not transferred to the fund pursuant to Section 51685.5 for the purposes defined in Section 51680.