PART 6. FACILITIES LOAN INSURANCE AND FINANCING [129000. - 129387.]
Part 6 added by Stats. 1995, Ch. 415, Sec. 9.
§§ 129000–129387 · 79 sections
CHAPTER 1. Health Facility Construction Loan Insurance §§ 129000–129355 · 71 sections
ARTICLE 1. General Provisions §§ 129000–129045 · 10 sections
- § 129000 This chapter may be cited as the “California Health Facility Construction Loan Insurance Law.”
- § 129005 The purpose of this chapter is to provide, without cost to the state, an insurance program for health facility construction, improvement, and expansion loans…
- § 129010 Unless the context otherwise requires, the definitions in this section govern the construction of this chapter and of Section 32127.2. (a) “Bondholder” means…
- § 129015 The department shall administer this chapter and shall make all regulations necessary to implement the provisions and achieve the purposes stated herein.
- § 129020 The department shall implement the loan insurance program for the construction, improvement, and expansion of public and nonprofit corporation health…
- § 129022 Applications submitted to the department shall be signed under penalty of perjury by the applicant.
- § 129030 The proceeds of all loans insured pursuant to this chapter shall be disbursed only upon order of the department or its designated agent. The department shall…
- § 129035 From time to time the department or its designated agent shall inspect each project for which loan insurance was approved, as needed, and if the inspection so…
- § 129040 (a) The department shall establish a premium charge for the insurance of loans under this chapter, and this charge shall be deposited in the fund. A one-time…
- § 129045 The department shall annually report to the Legislature the financial status of the program and its insured portfolio, including the status of all borrowers in…
ARTICLE 1.5. Hospital Construction Assistance §§ 129048–129049 · 2 sections
- § 129048 The Legislature finds and declares all of the following: (a) The State of California has a compelling interest in ensuring that adequate health facilities that…
- § 129049 (a) The department may, at the request of a hospital, commission an independent study of market need and feasibility, as required by the United States…
ARTICLE 2. Insurable Loans and Applications Therefor §§ 129050–129110 · 17 sections
- § 129050 A loan shall be eligible for insurance under this chapter if all of the following conditions are met: (a) The loan shall be secured by a first mortgage, first…
- § 129051 (a) The department shall develop and implement a system for assessing the relative financial risk of the applicant. The system shall include, but is not…
- § 129052 A pledge by or to the department of, or the grant to the department of a security interest in, revenues, moneys, accounts, accounts receivable, contract…
- § 129055 In order to comply with subdivision (j) of Section 129050, any borrower that is certified for reimbursement for cost of care under Chapter 7 (commencing with…
- § 129060 Subdivisions (b) and (c) of Section 129355 shall apply to any residential or nonresidential alcoholism or drug abuse recovery or treatment program or facility,…
- § 129065 As part of its assurance under subdivision (j) of Section 129050, any borrower that is a general acute care hospital or acute psychiatric hospital shall agree…
- § 129070 In the event the borrower cannot demonstrate that it meets the requirement of Section 129055, it may nonetheless be eligible for a loan under this chapter if…
- § 129075 (a) Each borrower shall provide any reports as may be required of it by Part 5 (commencing with Section 128675), from which the department shall determine the…
- § 129080 The department may impose additional appropriate remedies and sanctions against a borrower when any of the following occurs: (a) The department determines that…
- § 129085 (a) If a borrower is unable to comply with subdivision (j) of Section 129050 due to selective provider contracting under the Medi-Cal program, and the…
- § 129087 The department shall develop and maintain a formal system of monitoring borrowers, in order to assist the department in detecting at the earliest possible date…
- § 129090 Pursuant to this chapter, political subdivisions and nonprofit corporations may apply for state insurance of needed construction, improvement, or expansion…
- § 129092 Notwithstanding any other provision of law, upon the application of a borrower for insurance, the department shall perform a feasibility study relating to the…
- § 129095 (a) The department shall not regulate, impose requirements on, or require approval by the department of a professional, or a fee charged by a professional,…
- § 129100 Every applicant for insurance shall be afforded an opportunity for a fair hearing before the committee upon 10 days’ written notice to the applicant. If the…
- § 129105 The department may upon application of the borrower insure any loan that is eligible for insurance under this chapter, and upon the terms prescribed by the…
- § 129110 Any contract of insurance executed by the department under this chapter shall be conclusive evidence of the eligibility of the loan for insurance and the…
ARTICLE 3. Defaults §§ 129125–129174.1 · 15 sections
- § 129125 In any case when the lender under a loan to a nonprofit corporation insured under this chapter shall have foreclosed and taken possession of the property under…
- § 129130 In any case when a political subdivision defaults on the payment of interest or principal accrued and due on bonds or other evidences of indebtedness insured…
- § 129135 Notwithstanding any requirement contained in this chapter relating to acquisition of title and possession of the project property by the lender and its…
- § 129140 Upon receiving notice of the default of any loan insured under this chapter, the department, in its discretion and for the purpose of avoiding foreclosure…
- § 129145 Notwithstanding any other provision of this chapter, after the department determines that the lender and borrower have exhausted all reasonable means of curing…
- § 129150 The department may at any time, under the terms and conditions that it may prescribe, consent to the lender’s release of the borrower from its liability under…
- § 129152 If a borrower fails to submit a required report, or upon any other default of any regulatory or contractual term or covenant, whether or not a default has been…
- § 129155 Debentures issued under this chapter shall be in the form and denomination, subject to the terms and conditions, and include provisions for redemption, if any,…
- § 129160 (a) (1) All debentures issued under this chapter to any lender or bondholder shall be executed in the name of the fund as obligor, shall be signed by the…
- § 129165 Notwithstanding any other provision of law relating to the acquisition, management or disposal of real property by the state, the department shall have power…
- § 129170 No lender or borrower shall have any right or interest in any property conveyed to the department or in any claim assigned to it, nor shall the department owe…
- § 129172 Notwithstanding any other provision of law, if, prior to foreclosing on any collateral provided by a borrower, the department institutes a judicial proceeding…
- § 129173 (a) In fulfilling the purposes of this article, as set forth in Section 129005, and upon making a determination that the financial status of a borrower may…
- § 129174 (a) In the event a borrower has defaulted in making its payments on the loan insured by the department to the lender or the borrower’s bond trustee, at any…
- § 129174.1 In the event an obligor on a loan insured by the department is the subject of an order for relief in bankruptcy and that a plan has been proposed for…
ARTICLE 4. Termination of Insurance §§ 129175–129185 · 3 sections
- § 129175 Should a borrower be more than 10 days delinquent in paying the premium charges or inspection fees for insurance under this chapter, the department shall…
- § 129180 The obligation to pay any subsequent premium charge for insurance shall cease, and all rights of the lender and the borrower under this chapter shall terminate…
- § 129185 The department is authorized to terminate any insurance contract upon joint request by the borrower and the lender and upon payment of a termination charge…
ARTICLE 5. Health Facility Construction Loan Insurance Fund §§ 129200–129215 · 4 sections
- § 129200 There is hereby established a Health Facility Construction Loan Insurance Fund, that shall be used by the department as a revolving fund for carrying out the…
- § 129205 Moneys in the fund not needed for the current operations of the department under this chapter shall be invested pursuant to law. The department may, with the…
- § 129210 (a) The department’s authorization to insure health facility construction, improvement, and expansion loans under this chapter shall be limited to a total of…
- § 129215 The Health Facility Construction Loan Insurance Fund, established pursuant to Section 129200, shall be a trust fund and neither the fund nor the interest or…
ARTICLE 5.5. Advisory Loan Insurance Committee §§ 129220–129221 · 2 sections
- § 129220 The department shall establish an Advisory Loan Insurance Committee which shall be comprised of nine members, eight of whom shall be appointed by the director…
- § 129221 The duties of the committee shall include, but not be limited to, the following: (a) The committee shall assist the director of the department in formulating…
ARTICLE 6. Community Mental Health Facilities Loan Insurance §§ 129225–129260 · 8 sections
- § 129225 This article shall be known as, and may be cited as, the Community Mental Health Facilities Loan Insurance Law.
- § 129230 It is the intent of the Legislature in enacting this article to encourage the development of facilities for community-based programs that assist mental health…
- § 129235 Loans of under three hundred thousand dollars ($300,000) for any single facility shall have priority for obtaining loan insurance under the special provisions…
- § 129240 The total amount of loans that may be insured pursuant to this article shall not exceed fifteen million dollars ($15,000,000).
- § 129245 No loan insurance shall be provided pursuant to this article for the purpose of providing psychiatric inpatient services in an acute psychiatric hospital or a…
- § 129250 The Legislative Analyst shall review and comment on the utilization and effectiveness of this article in the annual budget analysis and in hearings.
- § 129255 If, in construing Article 6 (commencing with Section 129225) of this chapter as applied to the other provisions of this chapter, any conflict arises, this…
- § 129260 If any provision of this article or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions…
ARTICLE 7. Small Facility Loan Guarantee for Developmental Disability Programs §§ 129275–129295 · 5 sections
- § 129275 This article shall be known, and may be cited, as the Small Facility Loan Guarantee for Programs Serving People with Developmental Disabilities.
- § 129280 The State of California has a compelling interest in the development of facilities for community-based programs that assist persons with a developmental…
- § 129285 (a) Loans of under three hundred thousand dollars ($300,000) for any single facility for six or fewer developmentally disabled shall have priority for…
- § 129290 If any provision of this article or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions…
- § 129295 The department may insure, pursuant to this article, loans to nonprofit borrowers that are not licensed to operate the facilities for which the loans are…
ARTICLE 9. Rural Hospital Grant Program §§ 129325–129335 · 3 sections
- § 129325 It is the intent of the Legislature in enacting this article to assist rural hospitals that play a vital role in the health delivery system. The Legislature…
- § 129330 In each even-numbered year, the department shall contract for an actuarial study to determine the reserve sufficiency of funds in the Health Facility…
- § 129335 (a) In each odd-numbered year when the reserve balance in the fund is projected to be in excess of that actuarially needed, the department may, subject to…
ARTICLE 10. Community Health Center Facilities Loan Insurance §§ 129350–129355 · 2 sections
CHAPTER 4. Distressed Hospital Loan Program §§ 129380–129387 · 8 sections
- § 129380 (a) This program shall be known, and may be cited, as the Distressed Hospital Loan Program. (b) The purpose of this program is to provide interest-free…
- § 129381 For the purposes of this chapter, the following definitions apply: (a) “Authority” means the California Health Facilities Financing Authority. (b) “Closed…
- § 129382 (a) The department shall administer the program, subject to subdivision (d) of Section 129385, for purposes of this chapter. (b) The department shall enter…
- § 129383 (a) In collaboration with the State Department of Health Care Services, the Department of Managed Health Care, and the State Department of Public Health, the…
- § 129384 (a) Notwithstanding Sections 15432 and 15451.5 of the Government Code, unless subdivision (c) applies, a hospital shall be required to begin making monthly…
- § 129385 (a) The Distressed Hospital Loan Program Fund is hereby established in the State Treasury. The fund shall be administered by the department consistent with…
- § 129386 (a) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title…
- § 129387 This chapter shall remain in effect only until January 1, 2032, and as of that date is repealed.