California Health and Safety Code

§ 44559.5

HSC § 44559.5 Effective Jan 1, 1994Div. 27 · Ch. 1 · Art. 8

Statute text

(a)The authority shall establish procedures under which financial institutions participating in the program established pursuant to this article may submit claims for reimbursement for losses incurred as a result of qualified loan defaults. A participating financial institution that charges off all or part of an enrolled loan to the loss reserve account may file a claim for reimbursement with the authority if both of the following conditions are met:

(1)The claim occurs contemporaneously with the action of the participating financial institution to charge off all or part of the loan.

(2)The charge off on an enrolled loan is made in a manner that is consistent with the participating financial institution’s usual method for making determinations on business loans that are not enrolled loans.

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Legislative history

Added by Stats. 1993, Ch. 1164, Sec. 4. Effective January 1, 1994.