California Boating Law

CALIFORNIA BOATING LAW

loans, which shall include, but not be limited to, definitions of collateral, standards for the payment of loans, weighing and ranking criteria to qualify and prioritize the loans, and the form of documents to be used to evidence loans. The purpose of the regulations shall be to ensure that loans made under this article conform with customary commercial practices. No loans shall be made pursuant to this article from funds appropriated in the Budget Act of 1999 until the loan approval standards have been approved by the Department of Finance. Any subsequent changes to the loan approval standards shall also be approved by the Department of Finance. 77. Borrow funds to protect security interest. (a) The department, subject to the approval of the Director of Finance, may borrow funds from the Harbors and Watercraft Revolving Fund when a borrower has defaulted from any financial obligation and funds are required to protect the security interest of the department with respect to any loan made under Section 76.3. (b) The funds borrowed under this section shall be repaid within three years from the date of the approval of the Director of Finance. The repayment shall include the principal amount of the loan, plus interest equal to the rate of earnings of money deposited in the Surplus Money Investment Fund at the time the loan is approved by the Director of Finance. (c) A maximum of ten million dollars ($10,000,000) per year may be used for purposes of this section. (d) The borrowed funds may be used to do any of the following: (1) Pay any administrative and legal expenses incurred in connection with those defaults. (2) Acquire through negotiated purchase or bid at auction any property which serves as collateral for those defaulted loans. (3) Pay any costs of operating and maintaining a recreational marina acquired as a result of a failed loan, until the marina is sold. 77.1. Disposition of defaulted property. The department, upon whatever terms and conditions it deems proper, may sell or otherwise dispose of property serving as collateral for a defaulted loan made under Section 76.3 or may operate, contract to operate, or let property involved in the default. All proceeds from any action of the department pursuant to this section shall be deposited in the Harbors and Watercraft Revolving Fund and credited towards the repayment of the defaulted loan. CHAPTER 3. BOATING AND WATERWAYS COMMISSION 80. Commission. The Harbors and Watercraft Commission and its successor, the Navigation and Ocean Development Commission, are, continued in existence in the Department of Boating and Waterways as the Boating and Waterways Commission but with only the powers and duties imposed upon it by this chapter. 80.2. Members of the commission. The commission shall be composed of seven members appointed by the Governor, with the advice and consent of the Senate. The members shall have experience and background consistent with the functions of the commission. In making appointments to the commission, the Governor shall give primary consideration to geographical location of the residence of members as related to boating activities and harbors. In addition to geographical considerations, the members of the commission shall be appointed with regard to their special interests in recreational boating. At least one of the members shall be a member of a recognized statewide organization representing recreational boaters. One member of the commis- sion shall be a private small craft harbor owner and operator. One member of the

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