California Code of Regulations, Title 17

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Division 1 State Department of Health Services

Chapter 1 Administration

Subchapter 2 Hospital Districts

Article 1 Liability Loans

Cal. Code Regs. Tit. 17, § 101 Loan Application

(a) The hospital district shall make application for a State loan to the Director of Health Services, 714 P Street, Sacramento, CA 95814.

(b) Within ninety (90) days after the receipt of the application the Department of Health Services will notify the applicant of its preliminary finding and recommendation. The notice will contain the information that the Department's final recommendation to the Legislature must be made within the next thirty (30) days and that any information that the applicant has that will affect the preliminary recommendation should be forwarded immediately.

Note: Authority cited: Sections 32351- 32355 and 32358, Health and Safety Code, Division 23. Reference: Sections 32351, 32353, 32355, Health and Safety Code, Division 23.

Cal. Code Regs. Tit. 17, § 102 Coverage

(a) The Department shall grant all loans which qualify, to the extent that funds are available, provided that:

(1) Such amount represents an excess of $300,000 in a medical injury tort judgment or settlement, the $300,000 being covered by insurance or reserve account, as specified in Section 100(a)(4)(B).

(2) The total amount of such loans does not exceed $1,000,000 in the aggregate.

(b) Physicians in the local community who are employees of the hospital district shall be covered for medical injury tort liability by the district.

Note: Authority cited: Sections 32351- 32355, Health and Safety Code, Division 23. Reference: Sections 32351, 32353, 32355, Health and Safety Code, Division 23.

Cal. Code Regs. Tit. 17, § 103 Repayment of Loans

(a) Repayment of loans shall be on an amortized schedule agreed upon by the Department and the hospital district. The repayment period shall not exceed forty (40) years. The interest rate shall not exceed the five-year average on the return on the investment of State funds pursuant to Chapter 3 (commencing with Section 16430), Part 2, Division 4, Title 2 of the Government Code.

(b) In event of default of repayment of a loan, the Department may attach real property and assets of the hospital district to recover the amount of the loan and appropriate interest as specified in (a) above.

Note: Authority cited: Sections 32351- 32355, Health and Safety Code, Division 23. Reference: Sections 32351, 32353, 32355 and 32358, Health and Safety Code, Division 23.