California Boating Law

TITLE 14

5105

DEPARTMENT OF BOATING AND WATERWAYS

(e) Next, priority shall be given to small craft harbor improvement projects that include restroom facilities, vessel pumpout facilities, oil recycling facilities, and receptacles for the purpose of separating, reusing, or recycling all solid waste materials. The standard to be followed by the department in ranking loan applications under this subdivision is the cumulative level of service provided by the small craft harbor for the aforementioned facilities. (f) In the event that a priority between applications cannot be established by Subsections (a) through (e), priority shall be given to applicants with greatest ability to repay the loan. (1) Evaluation of the applicant’s ability to repay shall be based on the applicant’s audited financial statements for the previous three years, if available. (2) If financial statements are not available, the applicant will provide other information acceptable to the department which establishes a financial ability to repay the loan. NOTE: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4, 85.2 and 87, Harbors and Navigation Code. 5105. Loan Terms and Conditions. The agreement between the department and the applicant shall include but not be limited to the following provisions: (a) A provision to the effect that the loan will be used for the purpose of developing the project in a continuous and expeditious manner to comple- tion and that the project when completed will be made available and open to all on equal and reasonable terms. (b) A provision specifying that no loan funds for construction purposes shall be released to an applicant until final plans and specifications for the project (or a particular portion thereof to be constructed with such funds) are approved in writing by the department. (c) A provision requiring applicant to comply with department approved construction plans and specifications and change orders thereto. (d) A repayment plan setting forth the provisions for repayment of principal and interest until the loan is repaid in full. (e) A provision permitting inspection of the project by the department or its agents at any time during construction or after completion, and permitting the inspection and audit of all records of the applicant relating to the project until the loan is paid in full. (f) A provision that the applicant will provide fire and extended coverage insurance to ninety percent of the value of insurable structures within the project area with the department named as additional insured. (g) A provision that the applicant will provide insurance, with the department named as additional insured, to cover liability arising from

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