51610. (a) The agency shall, with respect to the implementation of
this part, and notwithstanding any other provision of law, have the
general powers set forth in Sections 51050 and 51058 and in this part
and, in addition, may do any and all things necessary to carry out
its purposes and exercise the powers expressly granted by this part.
(b) The fund shall develop and maintain complete and current
statistics and other information with respect to the loan insurance
program, including, but not limited to, each of the following:
(1) Mortgage arrearages, defaults, and foreclosures on insured
loans.
(2) Expenses incurred as a result of those arrearages, defaults,
and foreclosures.
(3) The extent of displacement caused by availability of insured
loans.
(c) The information required by subdivision (b) shall be provided
in the agency's annual report as required by Section 51622.
51611. (a) The California Housing Loan Insurance Fund is hereby
created in the State Treasury.
(b) The California Housing Insurance Fund is hereby renamed the
California Housing Loan Insurance Fund. All references in any
provision of law to the California Housing Insurance Fund shall be
deemed to refer to the California Housing Loan Insurance Fund.
Notwithstanding Section 13340 of the Government Code, all money in
the insurance fund is hereby continuously appropriated to the agency
without regard to fiscal year for the purpose of insuring loans and
bonds pursuant to this part and for the purpose of defraying
administrative expenses incurred by the agency in operating these
programs of loan and bond insurance. All insurance premiums shall be
deposited in the insurance fund. Mortgage insurance in force under
certificates of insurance by the California Housing Insurance Fund
shall continue in force without interruption after the effective date
of this act.
(c) Notwithstanding Chapter 2 (commencing with Section 12850) of
Part 2.5 of Division 3 of Title 2 of the Government Code, Article 2
(commencing with Section 13320) of Chapter 3 of Part 3 of Division 3
of Title 2 of the Government Code, or any other provision of law,
expenditures of the insurance fund shall not be subject to the
supervision or approval of any other officer or division of state
government. However, the agency's budget respecting the insurance
fund shall be prepared and reviewed in accordance with Section 50913.
(d) The agency shall, from time to time, direct the Treasurer to
invest moneys in the insurance fund which are not required for its
current needs in eligible securities designated by the agency from
among those specified in Section 16430 of the Government Code or as
otherwise permitted by law. The agency may direct the Treasurer to
deposit moneys in the insurance fund in interest-bearing accounts in
state or national banks or other financial institutions having
principal offices in this state. To the extent permitted by law, the
agency may invest moneys in the fund in obligations of financial
institutions, as permitted by board resolution. The agency may also
require the transfer of moneys in the insurance fund to the Surplus
Money Investment Fund for investment pursuant to Article 4
(commencing with Section 16470) of Chapter 3 of Part 2 of Division 4
of Title 2 of the Government Code.
51614. (a) The agency is hereby vested with full power, authority,
and jurisdiction over the insurance fund. The agency may perform all
acts necessary or convenient in the exercise of any power, authority,
or jurisdiction over the insurance fund, either in the
administration thereof or in connection with the business
administered under this part, as fully and completely as the
governing body of a private insurance carrier.
(b) The agency may create task forces and advisory committees,
when appropriate and as the members deem necessary, for the purpose
of obtaining advice on issues arising as a result of the agency's
activities under this part. Ex officio members of those task forces
and advisory committees may include, but are not limited to, the
Insurance Commissioner or his or her designee, the Director of
Housing and Community Development or his or her designee, the
Director of the Seismic Safety Commission or his or her designee, and
the Secretary of Emergency Management or his or her designee.
51615. (a) Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of, and Article 9 (commencing with Section 11120) of
Chapter 1 of, Chapter 3.5 (commencing with Section 11340) of, Chapter
4 (commencing with Section 11370) of, and Chapter 5 (commencing with
Section 11500) of, Part 1 of Division 3 of Title 2 of, the
Government Code shall apply to the agency with respect to the
administration of the insurance fund.
(b) Notwithstanding subdivision (a), the provisions described in
that subdivision shall not apply to any of the following:
(1) The agency's activities and records relating to establishing
rates and premiums.
(2) Bids or contracts for insurance, coinsurance, and reinsurance.
(3) Other matters necessary to maintain the competitiveness of the
agency in the mortgage insurance industry, including, but not
limited to, the development of financial products.
51616. The state shall not be liable beyond the assets of the
insurance fund for any obligations in connection therewith.
51618. There shall be within the agency a Director of Insurance of
the fund, appointed by the Governor and serving at the pleasure of
the executive director. The Director of Insurance of the fund shall
demonstrate knowledge of, and expertise in, mortgage insurance. The
Director of Insurance of the fund shall manage and conduct the
business and affairs of the insurance fund under the direction and
supervision of the agency, and shall perform any other duties as the
executive director prescribes.
51619. The agency may delegate to the Director of Insurance of the
fund, under the resolutions of the board and subject to the
conditions as it from time to time prescribes, any power, function,
or duty conferred by law on the agency in connection with the
administration, management, and conduct of the business and affairs
of the insurance fund. The Director of Insurance may exercise the
powers and functions and perform the duties with the same force and
effect as the executive director, but subject to his or her approval.
51620. In conducting the business and affairs of the insurance
fund, the executive director may do any of the following:
(a) Enter into contracts of insurance.
(b) Decline to insure any risk in which the minimum requirements
of the insurance fund are not complied with, or which is beyond the
safe carrying of the insurance fund.
(c) Reinsure any risk or any part thereof.
(d) Make rules for the settlement of claims against the insurance
fund and determine to whom and through whom the payments are to be
made.
(e) Enter into any contracts or obligations relating to the fund.
(f) Invest and reinvest the moneys belonging to the fund as
provided by this part or Part 3 (commencing with Section 50900).
(g) Conduct all business and affairs and perform all acts relating
to the fund whether or not specifically designated in this part.
51622. (a) The agency may contract with any private person or
public agency for review of the administration of this part and for
assistance in implementing this part.
(b) The agency shall prepare a biennial report on the condition of
the program of loan and bond insurance authorized by this part. The
report of the evaluation shall include an evaluation of program
effectiveness in relation to cost and shall include recommendations
and suggested legislation for the improvement of the program, if any.
The agency shall obtain an annual audit of the insurance fund's
books and accounts with respect to its activities under this part to
be made at least once for each calendar year by an independent
certified public accountant. A copy of the annual audit and biennial
report shall be transmitted to the Governor, to the chairperson and
vice-chairperson of the Senate and Assembly housing policy
committees, the Senate and Assembly budget committees, and the Joint
Legislative Budget Committee, and made available for review by
interested parties no later than November 1 of each year for the
annual audit, and November 1 biennially for the program evaluation
report.
51623. (a) The California Housing Loan Insurance Fund, as provided
for pursuant to Section 51653 as it read prior to the effective date
of the act that adds this part, is continued in existence, and,
pursuant to Section 51603, is referred to as the insurance fund.
Notwithstanding Section 13340 of the Government Code, all money in
the insurance fund is hereby continuously appropriated to the agency
without regard to fiscal year for the purpose of insuring loans and
bonds pursuant to this part and for the purpose of defraying
administrative expenses incurred by the fund in operating those
programs of loan and bond insurance. All insurance premiums shall be
deposited in the insurance fund.
(b) The insurance fund shall be administered by the agency for the
purpose of insuring loans and bonds as provided in this part. Any
appropriation made therefrom or thereto before the effective date of
this section shall continue to be available for the purposes for
which it was made.
51624. The agency shall prepare a preliminary budget for the agency'
s activities under this part on or before December 1 of each year for
the ensuing fiscal year, to be reviewed by the Secretary of the
Business, Transportation and Housing Agency, the Director of Finance,
and the Joint Legislative Budget Committee.
51625. (a) The agency shall cause all moneys in the insurance fund
which are in excess of current requirements to be invested and
reinvested, from time to time, in the same manner as provided for
private insurance carriers pursuant to Article 3 (commencing with
Section 1170) of Chapter 2 of Part 2 of Division 1 of the Insurance
Code.
(b) All interest or other increment resulting from the investment
shall be deposited in the insurance fund, notwithstanding Section
16305.7 of the Government Code. Moneys in the insurance fund shall
not be subject to transfer to any other fund pursuant to Part 2
(commencing with Section 16300) of Division 4 of Title 2 of the
Government Code, except the Surplus Money Investment Fund.
51626. The insurance fund shall be organized as a public enterprise
fund.
51627. The assets of the insurance fund shall be applicable to the
payment of losses sustained on account of insurance and to the
payment of the salaries and other expenses charged against it in
accordance with this part.
51628. The agency shall, after a reasonable time during which it
may establish a business, be competitive with other insurers, and it
is the intent of the Legislature that the insurance fund shall
ultimately become neither more nor less than self-supporting.
However, this section shall not be construed to preclude the
insurance fund from operating in a manner that will permit the agency
to create additional reserves from operations in order that the
agency can maximize its insurance capacity.
51632. Claims arising out of activities of the agency on behalf of
the insurance fund pursuant to this part are exempted from the
provisions of Part 3 (commencing with Section 900) of Division 3.6 of
Title 1 of the Government Code.
51636. Except as provided in this part, the agency, on behalf of
the insurance fund pursuant to this part, shall not be subject to the
provisions of the Government Code made applicable to state agencies
generally or collectively, unless the section specifically names the
fund as an agency to which the provision applies.
51637. With respect to the administration of the insurance fund,
the agency shall be subject to the provisions of Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1 of, and
Division 5 (commencing with Section 18000) of Title 2 of, the
Government Code, and any other personnel management provisions in law
that are generally applicable to state employees. Notwithstanding
subdivision (e) of Section 3513 of the Government Code, up to five
positions of the insurance fund of the agency may be designated as
managerial under Section 18801.1 of the Government Code. All other
position designations in the insurance fund of the agency are subject
to Sections 3513 and 18801.1 of the Government Code. In making these
designations, consideration shall be given to the agency's need and
continued ability to attract and maintain qualified individuals
within the insurance fund.
51639. The agency shall establish reserve accounts for unearned
premiums, losses, and potential catastrophic losses caused by
economic cycles. The agency shall not cause sums to be withdrawn from
the loan insurance reserve account in amounts which would reduce the
moneys therein to less than the insurance reserve requirement,
except as necessary to satisfy liabilities arising under contracts of
loan insurance. In the event that the loan insurance reserve account
is reduced to less than the insurance reserve requirement, the
agency shall cease making commitments for, and contracts of,
insurance until the loan insurance reserve account has been restored
to satisfy that requirement.
51640. There is hereby continued in existence a bond insurance
reserve account in the insurance fund to secure commitments under
contracts to insure bonds. The agency shall take all reasonable steps
to ensure that the bond reserve account is continuously maintained
at not less than the bond reserve requirement. The agency shall not
cause sums to be withdrawn from the bond insurance reserve account in
amounts which would reduce the moneys therein to less than the bond
reserve requirement, except as necessary to satisfy liabilities
arising under contracts of bond insurance. In the event that the bond
insurance reserve account is reduced to less than the bond reserve
requirement, the agency shall cease making contracts of bond
insurance until the account has been restored to satisfy that
requirement.
51641. The agency may create other accounts within the insurance
fund as it deems are necessary or convenient to carry out the
purposes of this part.
51642. (a) The obligation of the agency and of the state to pay any
insurance benefit pursuant to contracts of insurance insuring loans
or bonds shall not exceed amounts deposited in the insurance fund
that are made available therefor under the respective contracts of
insurance. Nothing in this part shall require the Legislature to
appropriate moneys from the General Fund in the State Treasury to the
insurance fund on account of these obligations. The insurance of
loans or bonds under this part shall not directly, indirectly, or
contingently obligate the state or any political subdivision thereof
to levy or to pledge any form of taxation whatever therefor or to
make any appropriation for their payment.
(b) All contracts of insurance insuring loans or bonds pursuant to
this part shall contain on the face thereof a statement to the
following effect: "Neither the faith and credit nor the taxing power
of the State of California is pledged to the payment of the principal
of or interest on this contract of insurance."
(c) Moneys in the insurance fund received from the proceeds of
bonds issued pursuant to the California Housing and Jobs Investment
Bond Act may not be transferred to any other fund of the agency
except as necessary to pay the expenses of operating the program of
loan and bond insurance for single-family residential housing
authorized by this part, nor shall the agency utilize any of these
moneys under the direction and control of the agency, other than
moneys in the insurance fund, to satisfy liabilities arising from
contracts of insurance authorized by this part.
(d) Moneys in the insurance fund may not be transferred to any
other fund of the agency except as necessary to pay the expenses of
operating the program of loan and bond insurance authorized by this
part, nor shall the agency utilize any moneys under the direction and
control of the agency to satisfy liabilities arising from contracts
of insurance authorized by this part.
(e) The agency, on behalf of, or for the benefit of, the
California Housing Loan Insurance Fund, may borrow or receive moneys
from the agency or from any federal, state, or local agency or
private entity, or may pledge funds from the California Housing
Finance Fund, in order to create or support reserves in the insurance
fund for loan or bond insurance as provided in this part and as
authorized by resolution of the board of directors.
(f) The agency shall create a separate reserve account for
insuring mortgages of multifamily housing developments which shall
consist of all of the following:
(1) Funds transferred by redevelopment agencies pursuant to
Section 33334.2. The use of these funds shall be consistent with
Section 33334.4.
(2) Any other funds available for insuring mortgages of
multifamily housing developments as may be made available for that
purpose by law and as provided in this part.
(g) Reserve funds for the single-family mortgage guarantee
insurance program and the multifamily residential mortgage guaranty
insurance program shall not be commingled.
51643. The agency shall not be required to pay any tax or
assessment on any property owned by the fund or upon the income
therefrom.
51643.5. (a) The agency shall be subject to, and comply with, the
same reserve certification requirements as mortgage guaranty insurers
who are licensed pursuant to Chapter 2A (commencing with Section
12640.01) of Part 6 of Division 2 of the Insurance Code.
(b) The agency shall not otherwise be subject to the Insurance
Code with respect to the operation of the insurance fund, except as
provided in this part.
51610. (a) The agency shall, with respect to the implementation of
this part, and notwithstanding any other provision of law, have the
general powers set forth in Sections 51050 and 51058 and in this part
and, in addition, may do any and all things necessary to carry out
its purposes and exercise the powers expressly granted by this part.
(b) The fund shall develop and maintain complete and current
statistics and other information with respect to the loan insurance
program, including, but not limited to, each of the following:
(1) Mortgage arrearages, defaults, and foreclosures on insured
loans.
(2) Expenses incurred as a result of those arrearages, defaults,
and foreclosures.
(3) The extent of displacement caused by availability of insured
loans.
(c) The information required by subdivision (b) shall be provided
in the agency's annual report as required by Section 51622.
51611. (a) The California Housing Loan Insurance Fund is hereby
created in the State Treasury.
(b) The California Housing Insurance Fund is hereby renamed the
California Housing Loan Insurance Fund. All references in any
provision of law to the California Housing Insurance Fund shall be
deemed to refer to the California Housing Loan Insurance Fund.
Notwithstanding Section 13340 of the Government Code, all money in
the insurance fund is hereby continuously appropriated to the agency
without regard to fiscal year for the purpose of insuring loans and
bonds pursuant to this part and for the purpose of defraying
administrative expenses incurred by the agency in operating these
programs of loan and bond insurance. All insurance premiums shall be
deposited in the insurance fund. Mortgage insurance in force under
certificates of insurance by the California Housing Insurance Fund
shall continue in force without interruption after the effective date
of this act.
(c) Notwithstanding Chapter 2 (commencing with Section 12850) of
Part 2.5 of Division 3 of Title 2 of the Government Code, Article 2
(commencing with Section 13320) of Chapter 3 of Part 3 of Division 3
of Title 2 of the Government Code, or any other provision of law,
expenditures of the insurance fund shall not be subject to the
supervision or approval of any other officer or division of state
government. However, the agency's budget respecting the insurance
fund shall be prepared and reviewed in accordance with Section 50913.
(d) The agency shall, from time to time, direct the Treasurer to
invest moneys in the insurance fund which are not required for its
current needs in eligible securities designated by the agency from
among those specified in Section 16430 of the Government Code or as
otherwise permitted by law. The agency may direct the Treasurer to
deposit moneys in the insurance fund in interest-bearing accounts in
state or national banks or other financial institutions having
principal offices in this state. To the extent permitted by law, the
agency may invest moneys in the fund in obligations of financial
institutions, as permitted by board resolution. The agency may also
require the transfer of moneys in the insurance fund to the Surplus
Money Investment Fund for investment pursuant to Article 4
(commencing with Section 16470) of Chapter 3 of Part 2 of Division 4
of Title 2 of the Government Code.
51614. (a) The agency is hereby vested with full power, authority,
and jurisdiction over the insurance fund. The agency may perform all
acts necessary or convenient in the exercise of any power, authority,
or jurisdiction over the insurance fund, either in the
administration thereof or in connection with the business
administered under this part, as fully and completely as the
governing body of a private insurance carrier.
(b) The agency may create task forces and advisory committees,
when appropriate and as the members deem necessary, for the purpose
of obtaining advice on issues arising as a result of the agency's
activities under this part. Ex officio members of those task forces
and advisory committees may include, but are not limited to, the
Insurance Commissioner or his or her designee, the Director of
Housing and Community Development or his or her designee, the
Director of the Seismic Safety Commission or his or her designee, and
the Secretary of Emergency Management or his or her designee.
51615. (a) Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of, and Article 9 (commencing with Section 11120) of
Chapter 1 of, Chapter 3.5 (commencing with Section 11340) of, Chapter
4 (commencing with Section 11370) of, and Chapter 5 (commencing with
Section 11500) of, Part 1 of Division 3 of Title 2 of, the
Government Code shall apply to the agency with respect to the
administration of the insurance fund.
(b) Notwithstanding subdivision (a), the provisions described in
that subdivision shall not apply to any of the following:
(1) The agency's activities and records relating to establishing
rates and premiums.
(2) Bids or contracts for insurance, coinsurance, and reinsurance.
(3) Other matters necessary to maintain the competitiveness of the
agency in the mortgage insurance industry, including, but not
limited to, the development of financial products.
51616. The state shall not be liable beyond the assets of the
insurance fund for any obligations in connection therewith.
51618. There shall be within the agency a Director of Insurance of
the fund, appointed by the Governor and serving at the pleasure of
the executive director. The Director of Insurance of the fund shall
demonstrate knowledge of, and expertise in, mortgage insurance. The
Director of Insurance of the fund shall manage and conduct the
business and affairs of the insurance fund under the direction and
supervision of the agency, and shall perform any other duties as the
executive director prescribes.
51619. The agency may delegate to the Director of Insurance of the
fund, under the resolutions of the board and subject to the
conditions as it from time to time prescribes, any power, function,
or duty conferred by law on the agency in connection with the
administration, management, and conduct of the business and affairs
of the insurance fund. The Director of Insurance may exercise the
powers and functions and perform the duties with the same force and
effect as the executive director, but subject to his or her approval.
51620. In conducting the business and affairs of the insurance
fund, the executive director may do any of the following:
(a) Enter into contracts of insurance.
(b) Decline to insure any risk in which the minimum requirements
of the insurance fund are not complied with, or which is beyond the
safe carrying of the insurance fund.
(c) Reinsure any risk or any part thereof.
(d) Make rules for the settlement of claims against the insurance
fund and determine to whom and through whom the payments are to be
made.
(e) Enter into any contracts or obligations relating to the fund.
(f) Invest and reinvest the moneys belonging to the fund as
provided by this part or Part 3 (commencing with Section 50900).
(g) Conduct all business and affairs and perform all acts relating
to the fund whether or not specifically designated in this part.
51622. (a) The agency may contract with any private person or
public agency for review of the administration of this part and for
assistance in implementing this part.
(b) The agency shall prepare a biennial report on the condition of
the program of loan and bond insurance authorized by this part. The
report of the evaluation shall include an evaluation of program
effectiveness in relation to cost and shall include recommendations
and suggested legislation for the improvement of the program, if any.
The agency shall obtain an annual audit of the insurance fund's
books and accounts with respect to its activities under this part to
be made at least once for each calendar year by an independent
certified public accountant. A copy of the annual audit and biennial
report shall be transmitted to the Governor, to the chairperson and
vice-chairperson of the Senate and Assembly housing policy
committees, the Senate and Assembly budget committees, and the Joint
Legislative Budget Committee, and made available for review by
interested parties no later than November 1 of each year for the
annual audit, and November 1 biennially for the program evaluation
report.
51623. (a) The California Housing Loan Insurance Fund, as provided
for pursuant to Section 51653 as it read prior to the effective date
of the act that adds this part, is continued in existence, and,
pursuant to Section 51603, is referred to as the insurance fund.
Notwithstanding Section 13340 of the Government Code, all money in
the insurance fund is hereby continuously appropriated to the agency
without regard to fiscal year for the purpose of insuring loans and
bonds pursuant to this part and for the purpose of defraying
administrative expenses incurred by the fund in operating those
programs of loan and bond insurance. All insurance premiums shall be
deposited in the insurance fund.
(b) The insurance fund shall be administered by the agency for the
purpose of insuring loans and bonds as provided in this part. Any
appropriation made therefrom or thereto before the effective date of
this section shall continue to be available for the purposes for
which it was made.
51624. The agency shall prepare a preliminary budget for the agency'
s activities under this part on or before December 1 of each year for
the ensuing fiscal year, to be reviewed by the Secretary of the
Business, Transportation and Housing Agency, the Director of Finance,
and the Joint Legislative Budget Committee.
51625. (a) The agency shall cause all moneys in the insurance fund
which are in excess of current requirements to be invested and
reinvested, from time to time, in the same manner as provided for
private insurance carriers pursuant to Article 3 (commencing with
Section 1170) of Chapter 2 of Part 2 of Division 1 of the Insurance
Code.
(b) All interest or other increment resulting from the investment
shall be deposited in the insurance fund, notwithstanding Section
16305.7 of the Government Code. Moneys in the insurance fund shall
not be subject to transfer to any other fund pursuant to Part 2
(commencing with Section 16300) of Division 4 of Title 2 of the
Government Code, except the Surplus Money Investment Fund.
51626. The insurance fund shall be organized as a public enterprise
fund.
51627. The assets of the insurance fund shall be applicable to the
payment of losses sustained on account of insurance and to the
payment of the salaries and other expenses charged against it in
accordance with this part.
51628. The agency shall, after a reasonable time during which it
may establish a business, be competitive with other insurers, and it
is the intent of the Legislature that the insurance fund shall
ultimately become neither more nor less than self-supporting.
However, this section shall not be construed to preclude the
insurance fund from operating in a manner that will permit the agency
to create additional reserves from operations in order that the
agency can maximize its insurance capacity.
51632. Claims arising out of activities of the agency on behalf of
the insurance fund pursuant to this part are exempted from the
provisions of Part 3 (commencing with Section 900) of Division 3.6 of
Title 1 of the Government Code.
51636. Except as provided in this part, the agency, on behalf of
the insurance fund pursuant to this part, shall not be subject to the
provisions of the Government Code made applicable to state agencies
generally or collectively, unless the section specifically names the
fund as an agency to which the provision applies.
51637. With respect to the administration of the insurance fund,
the agency shall be subject to the provisions of Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1 of, and
Division 5 (commencing with Section 18000) of Title 2 of, the
Government Code, and any other personnel management provisions in law
that are generally applicable to state employees. Notwithstanding
subdivision (e) of Section 3513 of the Government Code, up to five
positions of the insurance fund of the agency may be designated as
managerial under Section 18801.1 of the Government Code. All other
position designations in the insurance fund of the agency are subject
to Sections 3513 and 18801.1 of the Government Code. In making these
designations, consideration shall be given to the agency's need and
continued ability to attract and maintain qualified individuals
within the insurance fund.
51639. The agency shall establish reserve accounts for unearned
premiums, losses, and potential catastrophic losses caused by
economic cycles. The agency shall not cause sums to be withdrawn from
the loan insurance reserve account in amounts which would reduce the
moneys therein to less than the insurance reserve requirement,
except as necessary to satisfy liabilities arising under contracts of
loan insurance. In the event that the loan insurance reserve account
is reduced to less than the insurance reserve requirement, the
agency shall cease making commitments for, and contracts of,
insurance until the loan insurance reserve account has been restored
to satisfy that requirement.
51640. There is hereby continued in existence a bond insurance
reserve account in the insurance fund to secure commitments under
contracts to insure bonds. The agency shall take all reasonable steps
to ensure that the bond reserve account is continuously maintained
at not less than the bond reserve requirement. The agency shall not
cause sums to be withdrawn from the bond insurance reserve account in
amounts which would reduce the moneys therein to less than the bond
reserve requirement, except as necessary to satisfy liabilities
arising under contracts of bond insurance. In the event that the bond
insurance reserve account is reduced to less than the bond reserve
requirement, the agency shall cease making contracts of bond
insurance until the account has been restored to satisfy that
requirement.
51641. The agency may create other accounts within the insurance
fund as it deems are necessary or convenient to carry out the
purposes of this part.
51642. (a) The obligation of the agency and of the state to pay any
insurance benefit pursuant to contracts of insurance insuring loans
or bonds shall not exceed amounts deposited in the insurance fund
that are made available therefor under the respective contracts of
insurance. Nothing in this part shall require the Legislature to
appropriate moneys from the General Fund in the State Treasury to the
insurance fund on account of these obligations. The insurance of
loans or bonds under this part shall not directly, indirectly, or
contingently obligate the state or any political subdivision thereof
to levy or to pledge any form of taxation whatever therefor or to
make any appropriation for their payment.
(b) All contracts of insurance insuring loans or bonds pursuant to
this part shall contain on the face thereof a statement to the
following effect: "Neither the faith and credit nor the taxing power
of the State of California is pledged to the payment of the principal
of or interest on this contract of insurance."
(c) Moneys in the insurance fund received from the proceeds of
bonds issued pursuant to the California Housing and Jobs Investment
Bond Act may not be transferred to any other fund of the agency
except as necessary to pay the expenses of operating the program of
loan and bond insurance for single-family residential housing
authorized by this part, nor shall the agency utilize any of these
moneys under the direction and control of the agency, other than
moneys in the insurance fund, to satisfy liabilities arising from
contracts of insurance authorized by this part.
(d) Moneys in the insurance fund may not be transferred to any
other fund of the agency except as necessary to pay the expenses of
operating the program of loan and bond insurance authorized by this
part, nor shall the agency utilize any moneys under the direction and
control of the agency to satisfy liabilities arising from contracts
of insurance authorized by this part.
(e) The agency, on behalf of, or for the benefit of, the
California Housing Loan Insurance Fund, may borrow or receive moneys
from the agency or from any federal, state, or local agency or
private entity, or may pledge funds from the California Housing
Finance Fund, in order to create or support reserves in the insurance
fund for loan or bond insurance as provided in this part and as
authorized by resolution of the board of directors.
(f) The agency shall create a separate reserve account for
insuring mortgages of multifamily housing developments which shall
consist of all of the following:
(1) Funds transferred by redevelopment agencies pursuant to
Section 33334.2. The use of these funds shall be consistent with
Section 33334.4.
(2) Any other funds available for insuring mortgages of
multifamily housing developments as may be made available for that
purpose by law and as provided in this part.
(g) Reserve funds for the single-family mortgage guarantee
insurance program and the multifamily residential mortgage guaranty
insurance program shall not be commingled.
51643. The agency shall not be required to pay any tax or
assessment on any property owned by the fund or upon the income
therefrom.
51643.5. (a) The agency shall be subject to, and comply with, the
same reserve certification requirements as mortgage guaranty insurers
who are licensed pursuant to Chapter 2A (commencing with Section
12640.01) of Part 6 of Division 2 of the Insurance Code.
(b) The agency shall not otherwise be subject to the Insurance
Code with respect to the operation of the insurance fund, except as
provided in this part.
51610. (a) The agency shall, with respect to the implementation of
this part, and notwithstanding any other provision of law, have the
general powers set forth in Sections 51050 and 51058 and in this part
and, in addition, may do any and all things necessary to carry out
its purposes and exercise the powers expressly granted by this part.
(b) The fund shall develop and maintain complete and current
statistics and other information with respect to the loan insurance
program, including, but not limited to, each of the following:
(1) Mortgage arrearages, defaults, and foreclosures on insured
loans.
(2) Expenses incurred as a result of those arrearages, defaults,
and foreclosures.
(3) The extent of displacement caused by availability of insured
loans.
(c) The information required by subdivision (b) shall be provided
in the agency's annual report as required by Section 51622.
51611. (a) The California Housing Loan Insurance Fund is hereby
created in the State Treasury.
(b) The California Housing Insurance Fund is hereby renamed the
California Housing Loan Insurance Fund. All references in any
provision of law to the California Housing Insurance Fund shall be
deemed to refer to the California Housing Loan Insurance Fund.
Notwithstanding Section 13340 of the Government Code, all money in
the insurance fund is hereby continuously appropriated to the agency
without regard to fiscal year for the purpose of insuring loans and
bonds pursuant to this part and for the purpose of defraying
administrative expenses incurred by the agency in operating these
programs of loan and bond insurance. All insurance premiums shall be
deposited in the insurance fund. Mortgage insurance in force under
certificates of insurance by the California Housing Insurance Fund
shall continue in force without interruption after the effective date
of this act.
(c) Notwithstanding Chapter 2 (commencing with Section 12850) of
Part 2.5 of Division 3 of Title 2 of the Government Code, Article 2
(commencing with Section 13320) of Chapter 3 of Part 3 of Division 3
of Title 2 of the Government Code, or any other provision of law,
expenditures of the insurance fund shall not be subject to the
supervision or approval of any other officer or division of state
government. However, the agency's budget respecting the insurance
fund shall be prepared and reviewed in accordance with Section 50913.
(d) The agency shall, from time to time, direct the Treasurer to
invest moneys in the insurance fund which are not required for its
current needs in eligible securities designated by the agency from
among those specified in Section 16430 of the Government Code or as
otherwise permitted by law. The agency may direct the Treasurer to
deposit moneys in the insurance fund in interest-bearing accounts in
state or national banks or other financial institutions having
principal offices in this state. To the extent permitted by law, the
agency may invest moneys in the fund in obligations of financial
institutions, as permitted by board resolution. The agency may also
require the transfer of moneys in the insurance fund to the Surplus
Money Investment Fund for investment pursuant to Article 4
(commencing with Section 16470) of Chapter 3 of Part 2 of Division 4
of Title 2 of the Government Code.
51614. (a) The agency is hereby vested with full power, authority,
and jurisdiction over the insurance fund. The agency may perform all
acts necessary or convenient in the exercise of any power, authority,
or jurisdiction over the insurance fund, either in the
administration thereof or in connection with the business
administered under this part, as fully and completely as the
governing body of a private insurance carrier.
(b) The agency may create task forces and advisory committees,
when appropriate and as the members deem necessary, for the purpose
of obtaining advice on issues arising as a result of the agency's
activities under this part. Ex officio members of those task forces
and advisory committees may include, but are not limited to, the
Insurance Commissioner or his or her designee, the Director of
Housing and Community Development or his or her designee, the
Director of the Seismic Safety Commission or his or her designee, and
the Secretary of Emergency Management or his or her designee.
51615. (a) Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of, and Article 9 (commencing with Section 11120) of
Chapter 1 of, Chapter 3.5 (commencing with Section 11340) of, Chapter
4 (commencing with Section 11370) of, and Chapter 5 (commencing with
Section 11500) of, Part 1 of Division 3 of Title 2 of, the
Government Code shall apply to the agency with respect to the
administration of the insurance fund.
(b) Notwithstanding subdivision (a), the provisions described in
that subdivision shall not apply to any of the following:
(1) The agency's activities and records relating to establishing
rates and premiums.
(2) Bids or contracts for insurance, coinsurance, and reinsurance.
(3) Other matters necessary to maintain the competitiveness of the
agency in the mortgage insurance industry, including, but not
limited to, the development of financial products.
51616. The state shall not be liable beyond the assets of the
insurance fund for any obligations in connection therewith.
51618. There shall be within the agency a Director of Insurance of
the fund, appointed by the Governor and serving at the pleasure of
the executive director. The Director of Insurance of the fund shall
demonstrate knowledge of, and expertise in, mortgage insurance. The
Director of Insurance of the fund shall manage and conduct the
business and affairs of the insurance fund under the direction and
supervision of the agency, and shall perform any other duties as the
executive director prescribes.
51619. The agency may delegate to the Director of Insurance of the
fund, under the resolutions of the board and subject to the
conditions as it from time to time prescribes, any power, function,
or duty conferred by law on the agency in connection with the
administration, management, and conduct of the business and affairs
of the insurance fund. The Director of Insurance may exercise the
powers and functions and perform the duties with the same force and
effect as the executive director, but subject to his or her approval.
51620. In conducting the business and affairs of the insurance
fund, the executive director may do any of the following:
(a) Enter into contracts of insurance.
(b) Decline to insure any risk in which the minimum requirements
of the insurance fund are not complied with, or which is beyond the
safe carrying of the insurance fund.
(c) Reinsure any risk or any part thereof.
(d) Make rules for the settlement of claims against the insurance
fund and determine to whom and through whom the payments are to be
made.
(e) Enter into any contracts or obligations relating to the fund.
(f) Invest and reinvest the moneys belonging to the fund as
provided by this part or Part 3 (commencing with Section 50900).
(g) Conduct all business and affairs and perform all acts relating
to the fund whether or not specifically designated in this part.
51622. (a) The agency may contract with any private person or
public agency for review of the administration of this part and for
assistance in implementing this part.
(b) The agency shall prepare a biennial report on the condition of
the program of loan and bond insurance authorized by this part. The
report of the evaluation shall include an evaluation of program
effectiveness in relation to cost and shall include recommendations
and suggested legislation for the improvement of the program, if any.
The agency shall obtain an annual audit of the insurance fund's
books and accounts with respect to its activities under this part to
be made at least once for each calendar year by an independent
certified public accountant. A copy of the annual audit and biennial
report shall be transmitted to the Governor, to the chairperson and
vice-chairperson of the Senate and Assembly housing policy
committees, the Senate and Assembly budget committees, and the Joint
Legislative Budget Committee, and made available for review by
interested parties no later than November 1 of each year for the
annual audit, and November 1 biennially for the program evaluation
report.
51623. (a) The California Housing Loan Insurance Fund, as provided
for pursuant to Section 51653 as it read prior to the effective date
of the act that adds this part, is continued in existence, and,
pursuant to Section 51603, is referred to as the insurance fund.
Notwithstanding Section 13340 of the Government Code, all money in
the insurance fund is hereby continuously appropriated to the agency
without regard to fiscal year for the purpose of insuring loans and
bonds pursuant to this part and for the purpose of defraying
administrative expenses incurred by the fund in operating those
programs of loan and bond insurance. All insurance premiums shall be
deposited in the insurance fund.
(b) The insurance fund shall be administered by the agency for the
purpose of insuring loans and bonds as provided in this part. Any
appropriation made therefrom or thereto before the effective date of
this section shall continue to be available for the purposes for
which it was made.
51624. The agency shall prepare a preliminary budget for the agency'
s activities under this part on or before December 1 of each year for
the ensuing fiscal year, to be reviewed by the Secretary of the
Business, Transportation and Housing Agency, the Director of Finance,
and the Joint Legislative Budget Committee.
51625. (a) The agency shall cause all moneys in the insurance fund
which are in excess of current requirements to be invested and
reinvested, from time to time, in the same manner as provided for
private insurance carriers pursuant to Article 3 (commencing with
Section 1170) of Chapter 2 of Part 2 of Division 1 of the Insurance
Code.
(b) All interest or other increment resulting from the investment
shall be deposited in the insurance fund, notwithstanding Section
16305.7 of the Government Code. Moneys in the insurance fund shall
not be subject to transfer to any other fund pursuant to Part 2
(commencing with Section 16300) of Division 4 of Title 2 of the
Government Code, except the Surplus Money Investment Fund.
51626. The insurance fund shall be organized as a public enterprise
fund.
51627. The assets of the insurance fund shall be applicable to the
payment of losses sustained on account of insurance and to the
payment of the salaries and other expenses charged against it in
accordance with this part.
51628. The agency shall, after a reasonable time during which it
may establish a business, be competitive with other insurers, and it
is the intent of the Legislature that the insurance fund shall
ultimately become neither more nor less than self-supporting.
However, this section shall not be construed to preclude the
insurance fund from operating in a manner that will permit the agency
to create additional reserves from operations in order that the
agency can maximize its insurance capacity.
51632. Claims arising out of activities of the agency on behalf of
the insurance fund pursuant to this part are exempted from the
provisions of Part 3 (commencing with Section 900) of Division 3.6 of
Title 1 of the Government Code.
51636. Except as provided in this part, the agency, on behalf of
the insurance fund pursuant to this part, shall not be subject to the
provisions of the Government Code made applicable to state agencies
generally or collectively, unless the section specifically names the
fund as an agency to which the provision applies.
51637. With respect to the administration of the insurance fund,
the agency shall be subject to the provisions of Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1 of, and
Division 5 (commencing with Section 18000) of Title 2 of, the
Government Code, and any other personnel management provisions in law
that are generally applicable to state employees. Notwithstanding
subdivision (e) of Section 3513 of the Government Code, up to five
positions of the insurance fund of the agency may be designated as
managerial under Section 18801.1 of the Government Code. All other
position designations in the insurance fund of the agency are subject
to Sections 3513 and 18801.1 of the Government Code. In making these
designations, consideration shall be given to the agency's need and
continued ability to attract and maintain qualified individuals
within the insurance fund.
51639. The agency shall establish reserve accounts for unearned
premiums, losses, and potential catastrophic losses caused by
economic cycles. The agency shall not cause sums to be withdrawn from
the loan insurance reserve account in amounts which would reduce the
moneys therein to less than the insurance reserve requirement,
except as necessary to satisfy liabilities arising under contracts of
loan insurance. In the event that the loan insurance reserve account
is reduced to less than the insurance reserve requirement, the
agency shall cease making commitments for, and contracts of,
insurance until the loan insurance reserve account has been restored
to satisfy that requirement.
51640. There is hereby continued in existence a bond insurance
reserve account in the insurance fund to secure commitments under
contracts to insure bonds. The agency shall take all reasonable steps
to ensure that the bond reserve account is continuously maintained
at not less than the bond reserve requirement. The agency shall not
cause sums to be withdrawn from the bond insurance reserve account in
amounts which would reduce the moneys therein to less than the bond
reserve requirement, except as necessary to satisfy liabilities
arising under contracts of bond insurance. In the event that the bond
insurance reserve account is reduced to less than the bond reserve
requirement, the agency shall cease making contracts of bond
insurance until the account has been restored to satisfy that
requirement.
51641. The agency may create other accounts within the insurance
fund as it deems are necessary or convenient to carry out the
purposes of this part.
51642. (a) The obligation of the agency and of the state to pay any
insurance benefit pursuant to contracts of insurance insuring loans
or bonds shall not exceed amounts deposited in the insurance fund
that are made available therefor under the respective contracts of
insurance. Nothing in this part shall require the Legislature to
appropriate moneys from the General Fund in the State Treasury to the
insurance fund on account of these obligations. The insurance of
loans or bonds under this part shall not directly, indirectly, or
contingently obligate the state or any political subdivision thereof
to levy or to pledge any form of taxation whatever therefor or to
make any appropriation for their payment.
(b) All contracts of insurance insuring loans or bonds pursuant to
this part shall contain on the face thereof a statement to the
following effect: "Neither the faith and credit nor the taxing power
of the State of California is pledged to the payment of the principal
of or interest on this contract of insurance."
(c) Moneys in the insurance fund received from the proceeds of
bonds issued pursuant to the California Housing and Jobs Investment
Bond Act may not be transferred to any other fund of the agency
except as necessary to pay the expenses of operating the program of
loan and bond insurance for single-family residential housing
authorized by this part, nor shall the agency utilize any of these
moneys under the direction and control of the agency, other than
moneys in the insurance fund, to satisfy liabilities arising from
contracts of insurance authorized by this part.
(d) Moneys in the insurance fund may not be transferred to any
other fund of the agency except as necessary to pay the expenses of
operating the program of loan and bond insurance authorized by this
part, nor shall the agency utilize any moneys under the direction and
control of the agency to satisfy liabilities arising from contracts
of insurance authorized by this part.
(e) The agency, on behalf of, or for the benefit of, the
California Housing Loan Insurance Fund, may borrow or receive moneys
from the agency or from any federal, state, or local agency or
private entity, or may pledge funds from the California Housing
Finance Fund, in order to create or support reserves in the insurance
fund for loan or bond insurance as provided in this part and as
authorized by resolution of the board of directors.
(f) The agency shall create a separate reserve account for
insuring mortgages of multifamily housing developments which shall
consist of all of the following:
(1) Funds transferred by redevelopment agencies pursuant to
Section 33334.2. The use of these funds shall be consistent with
Section 33334.4.
(2) Any other funds available for insuring mortgages of
multifamily housing developments as may be made available for that
purpose by law and as provided in this part.
(g) Reserve funds for the single-family mortgage guarantee
insurance program and the multifamily residential mortgage guaranty
insurance program shall not be commingled.
51643. The agency shall not be required to pay any tax or
assessment on any property owned by the fund or upon the income
therefrom.
51643.5. (a) The agency shall be subject to, and comply with, the
same reserve certification requirements as mortgage guaranty insurers
who are licensed pursuant to Chapter 2A (commencing with Section
12640.01) of Part 6 of Division 2 of the Insurance Code.
(b) The agency shall not otherwise be subject to the Insurance
Code with respect to the operation of the insurance fund, except as
provided in this part.
