10 CCR s 5286

Cal. Admin. Code tit. 10, s 5286

CALIFORNIA CODE OF REGULATIONS
TITLE 10. INVESTMENT
CHAPTER 7.1. BUSINESS, TRANSPORTATION AND HOUSING AGENCY: METAL PLATING
FACILITY LOAN GUARANTEES
ARTICLE 1. METAL PLATING FACILITY LOAN GUARANTEES
This database is current through 01/05/07, Register 2007, No. 1.
s 5286. Collection Requirements for Collection Guarantees.

(a) A lender shall not be authorized to file a demand for a collection
guarantee unless it has complied with this section. The requirements
contained in this section are in addition to the requirements contained in
section 5285.

(b) The lender must liquidate all collateral, but shall not be required to
file a lawsuit against any borrower or guarantor. "Liquidate" as used in
this paragraph means that the lender has exhausted all collateral by one
of the following methods:

(1) Converted the collateral into cash;

(2) Demonstrated, to the satisfaction of the corporation that the
collateral is without sufficient value to convert to cash; or

(3) Demonstrated that the borrower has filed for bankruptcy.

Note: Authority cited: Section 42106, Public Resources Code.
Reference: Sections 42101 and 42102.4, Public Resources Code.

HISTORY

1. New section filed 7-26-2006 as an emergency; operative 7-26-2006
(Register
2006, No. 30). This regulatory action is deemed an emergency, was filed
directly with the Secretary of State, and shall remain in effect until
revised
or repealed by the Business, Transportation and Housing Agency pursuant to

Public Resources Code section 42106.

10 CCR s 5286, 10 CA ADC s 5286
1CAC

10 CA ADC s 5286

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