2005 California Corporations Code Sections 14061-14069.6 Article 8. Corporations, MiscellaneousCORPORATIONS CODE
14061. Every corporation shall provide for and maintain a central staff to perform all administrative requirements of the corporation including all those functions required of a corporation by the director. 14062. Reasonable costs incurred by a corporation in the creation and maintenance of a central staff shall be paid to the corporation from state funds including a portion of the interest earned on the expansion fund and the corporation's trust fund account, if the corporation has a trust fund account, otherwise, on the expansion fund. 14064. The use of state funds paid out to the trust fund and the return on those funds from investment pursuant to Section 14038 is conditional pursuant to Sections 14028 and 14039. Each corporation shall enter into a written signed agreement with the state at the beginning of each fiscal year. The agreement shall govern the activities in which the corporations engage, the investment of state funds and its return, and the budgeted administrative expenses the corporations may incur. In the event the state and corporation do not reach an agreement, or the state finds the corporation has violated the terms of an active agreement, the state may take action under Sections 14028 and 14039 or other action as appropriate. In the event the state and corporation do not reach agreement or the state finds the corporation has violated the terms of an active agreement, the corporation shall have no authority to withdraw or encumber the trust fund or the return of those funds by the issuance of guarantees, by incurring expenses against the fund and its return in any manner whatsoever, and the state may take action under Sections 14028 and 14039 or other action as appropriate. Any guarantee or other encumbrance made by the corporation in violation of this section shall be null and void, and neither the state nor the trust fund will be liable therefor. 14065. The corporations shall report to the director, or his or her designated representative, all statistical and other reports required by this part, responses to audit reports, budget requirements, invoices submitted for payment by the state, and information concerning loans made or guaranteed. 14066. The corporation shall make a report to the director, as of the close of business on June 30, of each year describing the corporation's activities and any additional information requested by the director, on or before August 1 of each year. 14067. The office may establish a program through which the corporations may assist small farms and rural and agricultural-related businesses with respect to financing and other assistance. 14068. To implement its responsibilities, the corporation shall undertake a program that shall include, but not be limited to, the following: (a) Develop and implement a program of outreach to low-resource businesses. The corporations located in rural areas shall give priority to low-resource farmers, rural, and agriculturally related businesses. (b) Work with other organizations and lenders to locate, identify, and assist those unable to obtain credit through conventional sources because of reasons such as low equity, inadequate collateral, unacceptable legal structure (such as a co-op or nonprofit organization), management inadequacies, and language problems. (c) To the extent possible, bring all possible financial resources (low-interest lenders, BIDCOs, MESBICs, other guarantors, etc.) to bear on borrower's problems. (d) Provide assistance to businesses receiving loans or guarantees that will maximize the probability of loan repayment. (e) Develop and implement a program for increasing program resources through private sector involvement and nonstate funds. (f) Develop a program for collecting and liquidating defaulted loans so that the corporations can qualify to become full-service lenders under the Small Business Administration. Corporations located in rural areas shall, in addition, try to qualify for lender status under the Farmers Home Administration. (g) Become an agent for other lenders and guarantors. 14069. In all their state-funded programs, the corporations shall, to the extent practicable, be complementary to, and not competitive with, commercial lenders and other state and federal programs. 14069.6. The Trade and Commerce Agency shall contract with an entity to conduct an independent statewide assessment of capital needs in California, as they pertain to the Small Business Financial Development Corporation program established pursuant to this part, and shall establish minimum standards for the siting of corporations, and determine and rank the regions and subregions in California most underserved by the financial development corporations. The determinations and rankings shall be final upon approval of the Office of Small Business. The assessment and the establishment of standards shall be completed no later than June 30, 1998.
Disclaimer: These codes may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.