California Boating Law

5105

TITLE 14

DEPARTMENT OF BOATING AND WATERWAYS

design, planning, construction, maintenance or operation of the project in the following minimum amounts: (1) Bodily injury $300,000 each person $1,000,000 each occurrence (2) Property and product damage $500,000 each occurrence $1,000,000 each aggregate (h) A provision allowing applicant to provide self-insurance in the amounts prescribed in subsection (g), above. (i) A provision that during the loan repayment period applicant shall not sell, lease, transfer, exchange, mortgage or hypothecate in any manner all or any portion of the real property or improvements within the project area without prior written approval of the department. (j) A provision requiring applicant to establish and capitalize a reserve fund in an amount and under terms and conditions specified by the department. (1) The reserve fund shall be an interest-bearing account. (2) In order to withdraw funds from the reserve fund, the signature of the director, or his or her designee shall be required. (3) All funds remaining in the reserve fund account shall be returned to the borrower upon full performance of the loan contract. However, unless and until all reserve funds, including accumulated interest, are first com- mitted to improvements at the marina, the borrower may not apply for additional department funding for any project within the marina for a period of five years beginning on the last date any reserve funds are returned to the borrower. (k) A statement that surplus revenues shall be administered as follows: (1) The applicant shall retain and invest in reasonable liquid assets all surplus revenues; (2) Except for the purpose of making capital improvements and at the discretion of the department, no expenditure of surplus revenues other than for the advance repayment of the loan will be permitted until the loan is paid in full; (3) The applicant shall record all surplus revenues in a separate account and such account shall reflect all receipts by the applicant of revenues originating within the project area. ( l ) A provision that the department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and copy any records for possible audit for a minimum of three years after final payment, unless a longer period of records retention is stipulated.

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