Section 32352 Of Chapter 5.5. State Loans And Insurance Procurement Assistance From California Health And Safety Code >> Division 23. >> Chapter 5.5.
32352
. Loans made pursuant to this article shall be repaid to the
state pursuant to a schedule mutually agreed upon by the state
department and the hospital district receiving the loan, not
exceeding 40 years, and at an interest rate not to exceed the
five-year average of the return on the investment of state funds
pursuant to Chapter 3 (commencing with Section 16430) of Part 2 of
Division 4 of Title 2 of the Government Code. The state department
shall grant all loans which qualify under the requirements of this
chapter to the extent that funds are available therefor. No
application for a loan shall be denied because previous applications
have been made except that the state department may procure insurance
to cover the losses, if any, in connection with such loans and the
cost of such insurance may be charged to the independent agency. The
cost charged to such an independent agency for the insurance shall
not exceed 5 percent of the total of loan losses.