Notwithstanding this article, the authority may facilitate the development of a secondary market for a loan enrolled in the capital access loan program by providing security for that loan, thereby increasing participation in the program by financial institutions and improving access to capital for small businesses. For purposes of this section, the actions that the authority may take include, but are not necessarily limited to, assigning all, or a portion of, any loss reserve account to any other entity in connection with providing security for a loan, including a trustee of a securitization trust, transferring an enrolled loan from a participating financial institution to a securitization trust, and assisting underwriters in marketing a loan to the secondary market.

(Added by Stats. 1999, Ch. 756, Sec. 4. Effective October 10, 1999.)

Terms Used In California Health and Safety Code 44559.8

  • Authority: means the California Pollution Control Financing Authority. See California Health and Safety Code 44559.1
  • Financial institution: means a federal- or state-chartered bank, savings association, credit union, not-for-profit community development financial institution certified under Part 1805 (commencing with Section 1805. See California Health and Safety Code 44559.1
  • Loss reserve account: means an account in the State Treasury or any financial institution that is established and maintained by the authority for the benefit of a financial institution participating in the Capital Access Loan Program established pursuant to this article for the purposes of the following:

    California Health and Safety Code 44559.1

  • Program: means the Capital Access Loan Program created pursuant to this article. See California Health and Safety Code 44559.1
  • Trustee: A person or institution holding and administering property in trust.
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