California § 51603 - Unless the context otherwise requires, the definitions contained in this chapter

§ 51603. Unless the context otherwise requires, the definitions contained in this chapter

(a) Unless the context otherwise requires, the definitions contained in this chapter shall govern the construction of this part. These definitions shall be in addition to definitions set forth in Part 1 (commencing with Section 50000) of this division, except that, where the same term is defined in this chapter and in that part, the definition of the term contained in this chapter shall prevail. (b) As used in this part: (1) “Approved lending institution” means a qualified mortgage lender approved by the agency for participation in a program of loan insurance, including those successors and assigns of any such institution as are permitted by the agency. “Approved lending institution” shall also include the agency. (1.5) “Board” or “board of directors” means the Board of Directors of the California Housing Finance Agency. (2) “Bond reserve requirement” means an amount specified by the agency which shall, as of any particular date of computation, be at least equal to the total of both of the following: (A) Insurance benefits due and payable as of the date under contracts of bond insurance. (B) The percentage, required by the rating agencies or required to adequately provide security for the bonds insured pursuant to this part, of the sum of the aggregate insurance outstanding under contracts of bond insurance and the aggregate amounts to be insured under the agency’s commitments to insure bonds. (2.5) “Credit enhancement” means a method of reducing risk for a lender through letters of credit and bond and loan insurance. (3) “Executive director” means the Executive Director of the California Housing Finance Agency. (4) “Fund” or “insurance fund” means the California Housing Loan Insurance Fund, which is hereby created. (5) “Insurance reserve requirement” means an amount established by the agency, which shall, as of any particular date of computation, be at least equal to the total of both of the following: (A) Insurance benefits due and payable as of that date pursuant to contracts of loan insurance. (B) An amount calculated to equal any required policyholder’s surplus which would be required of a mortgage guaranty insurer under Section 12640.05 of the Insurance Code. (6) “Insured loan” means a loan insured pursuant to Chapter 4 (commencing with Section 51650). (7) “Loan-to-value limitation” means a limitation on the ratio of the original principal balance of a loan to the appraised value at the time of execution of the contract of insurance, including the estimated costs of repair and rehabilitation and sale, if any, of the property securing it. (8) “Mortgage guaranty insurance” means either of the following: (A) Insurance against financial loss by reason of nonpayment of principal, interest, and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a first lien or charge on real estate, provided the improvement on the real estate is a residential building or a condominium unit or buildings designed for occupancy by not more than four families. (B) Insurance against financial loss by reason of nonpayment of principal, interest, and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a junior lien or charge on real estate, provided the improvement on the real estate is a residential building or a condominium unit or buildings designed for occupancy by not more than four families. (C) Insurance against financial loss by reason of nonpayment of principal, interest, and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a lien or charge on real estate, provided the improvement on the real estate is a building or buildings designed for occupancy by five or more families or designed to be occupied for industrial or commercial purposes. (9) “Multifamily residential housing” means an improvement on real estate which is a building or buildings containing five or more residential units. (10) “Persons and families of low or moderate income” means “persons and families of low or moderate income” as defined in Section 50093. (11) “Qualified developer” means a housing sponsor which is certified by the agency to be qualified according to experience, financial capability, and any other pertinent criteria as the fund may establish to carry out rehabilitation and new construction with loans insured pursuant to this part. (12) “Rehabilitated structure” means a residential structure which becomes eligible for an insured acquisition loan by rehabilitation conducted pursuant to rules of the agency, whether or not loan insurance is provided by the agency for that rehabilitation. (13) “Single-family residential housing” means an improvement on real estate which is a building or a condominium unit or buildings containing one to four units.