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Last modified
8/16/2009 3:07:10 PM
Creation date
10/4/2006 7:02:26 AM
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Board Meetings
Board Meeting Date
5/20/2002
Description
CF Section - Changes in Existing Loans - Pinon Mesa Ranches Community Association - Irrigation System Project
Board Meetings - Doc Type
Memo
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<br />-4 - <br /> <br />liquidation, against any person other than a creditor of the corporation to whom the corporation <br />distributed its property. <br /> <br />Item #2 above involves participation by the State Controller, State Treasurer, Central <br />Collections, and possibly the General Assembly acting upon recommendations by the CWCB. <br /> <br />Staff feels that all efforts to work with the project sponsor, relative to #3 above, will continue <br />to be unproductive given the dissolved status ofthe association. <br /> <br />An attempt should be made to recover as many assets as possible from the dissolved <br />association in order to minimize the financial impact to the Construction Fund. Contractual and <br />govemmental procedures are in place to direct the collection of Pinon Mesa's available assets. Upon <br />collection of those assets, there does not seem to be a reason to keep this loan appropriation open for <br />any further transactions. It is staff's opinion that the field condition of the project is unsuitable for any <br />further construction work without complete project re-design. Also, because the project sponsor that <br />originally received the loan appropriation no longer exists, there is no entity to conduct business with. <br /> <br />Recommendation <br /> <br />Staff recommends that the Board proceed with the following actions to resolve the loan default <br />of the Pinon Mesa Ranches Community Association: <br /> <br />1. Notify the Secretary of State, acting as Pinon Mesa's agent, of the loan default and of the CWCB's <br />intentions to file a claim on all undistributed assets of Pinon Mesa. <br /> <br />2. Commence recovery of all loan collateral by notifying Pinon Mesa's bank that Pinon Mesa is in <br />default and request the bank to transfer the funds in the assigned accounts to the CWCB. <br /> <br />3. Upon exhaustion of all efforts described in items 1 and 2 above, proceed with the measures outlined <br />in the State Department of Personnel, Division of Accounts and Control, Accounts Receivable <br />Collections Rule, as set forth in 1 CCR 101-6, Rule 1.61 (Write-off of Accounts Receivable), <br /> <br />4. Authorize staff to utilize available resources in the Loan Foreclosure Fund for any expenses incurred <br />during the loan settlement process, <br /> <br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />
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