2007 California Military and Veterans Code Article 3.5. Funds

CA Codes (mvc:988-988.5)

988.  There is in the State Treasury a revolving fund known as the
Veterans' Farm and Home Building Fund of 1943.  All moneys deposited
in such fund shall be subject to the provisions of this article.
Money may be withdrawn from such fund in accordance with law upon
requisition of the department.



988.1.  The money paid by purchasers shall be deposited in the
Veterans' Farm and Home Building Fund of 1943 and be available for
the purpose of carrying out the provisions of this article.



988.2.  (a) For purposes of this section, "purchaser" has the same
definition as provided in Section 987.53.
   (b) Out of any money available in the Veterans' Farm and Home
Building Fund of 1943, the department may advance to any purchaser
upon his or her application, and under the policies as the department
may, from time to time, prescribe, sums for the purpose of paying
taxes and assessments, or making permanent improvements, including
permanent improvements for the purpose of increasing farm
productivity, or for keeping in good order or repair, or for
painting, redecorating, or remodeling, all buildings, fences, or
other permanent improvements on, or the insuring against fire or
other hazards, any building, fence, or other permanent improvement,
or crops on the property being purchased from the department, or the
department may advance to the purchaser moneys actually expended in
so doing.
   (c) Any of the money advanced to a purchaser by the department may
be added to the deferred principal of the purchaser's account and
shall bear interest at the rate prescribed by the department and
shall be repaid by the purchaser to the department under the
conditions as it may prescribe.
   (d) The moneys advanced may, in the discretion of the department,
be in addition to the maximum purchase price of a farm or home as
provided by the Veterans' Farm and Home Purchase Act of 1974, as
amended, and acts supplementary thereto.
   (e) Any money required by the department to be paid for the
purpose of taxes, insurance premiums, and other charges when they
become due may be maintained by the department using the escrow
accounting method in accordance with lending industry standards and
the laws governing escrow accounts of this type.
   (f) The department shall be the sole judge of the need and
desirability of making advances or requiring payments by the
purchaser under this section.


988.3.  The Department of Finance may make advances of money to the
department, needed to meet contingent expenses, of not more than
fifty thousand dollars (,000), as the Department of Finance
determines necessary, and may make advances of money to the
department, needed to carry out Articles 3 (commencing with Section
984), 3.1 (commencing with Section 987.50), and 3.5 (commencing with
Section 988) of this chapter of not more than twenty-five million
dollars (,000,000), as the Department of Finance determines
necessary, and these advances shall be administered as revolving
funds.  The Controller may draw warrants upon the Veterans' Farm and
Home Building Fund for these advances, and the Treasurer may pay
them.



988.4.  (a) For purposes of this section, "purchaser" includes any
veteran whose only loan with the department is for the purpose of a
home improvement on property that is the principal place of residence
of the veteran.
   (b) (1) Out of any money available in the Veterans' Farm and Home
Building Fund of 1943, the department may advance to a purchaser upon
his or her application, and under the policies as the department
may, from time to time, prescribe, sums for the purpose of making
alterations, repairs, or improvements on or in connection with the
principal place of residence of the purchaser.
   (2) Notwithstanding any other provision of law, in making the
advances described in paragraph (1), the department may secure that
advance by issuing a deed of trust, a promissory note, or other
security interest that is subordinate to any existing financing on
the principal place of residence of the purchaser.
   (c) The department shall be the sole judge of the need and
desirability of making advances and the method of repayment by the
purchaser under this section.



988.5.  All loans granted under this article shall be funded in
accordance with federal laws governing the use of tax-exempt bonds.