(a) The program manager may temporarily suspend the guarantee authority or other financial product authority of a corporation if in the determination of the program manager a corporation has substantially failed to comply with any of the requirements in subdivision (b), causing irreparable harm to the program, the corporationâs guarantee, or any other financial products authority. The notice of temporary suspension sent to the corporation shall specify the reasons for the action. (1) As used in this section, âguarantee or any other financial products authorityâ means the authority to make or guarantee or administer any other financial products that encumber funds in a trust fund account, any account or subaccount under the direct control of the bank or other state entity, or the expansion fund. (2) The program manager shall make one of the determinations specified in subdivision (b) within 30 days of the effective date of the temporary suspension, unless the corporation and the program manager mutually agree to an extension. The corporation shall have the opportunity to submit written material to the program manager addressing the items stated in the temporary suspension notice. If the program manager does not make any determinations within 30 days, the temporary suspension shall be reversed. The corporationâs yearly contract shall remain in effect during the period of temporary suspension, and the corporation shall continue to receive reimbursement of necessary operating expenses. (b) Failure of a corporation to substantially comply with the following may result in the suspension or termination of a corporation: (1) Directives and requirements adopted by the bank board, for implementing the California Small Business Development Corporation Law (Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of Title 1 of the Corporations Code) and this chapter. (2) Failure to meet any fiscal, audit, examination, or portfolio requirement, as contained in the directives and requirements and examination reports. (3) Failure to significantly meet any milestones or scope of work as contained in the performance contract between the corporation and the bank. (4) Any other action in the opinion of the program manager that causes irreparable harm to the corporation, the expansion fund, or the trust fund. (c) Pursuant to subdivisions (a) and (b), the program manager may take any of the following actions: (1) Terminate the temporary suspension. (2) Terminate the temporary suspension subject to the corporationâs adoption of a specified remedial action plan approved by the program manager. (3) Continue the temporary suspension of guarantee and other financial product authority until a specified time. (4) Terminate the corporationâs authority to administer specified loan guarantees or other financial products. (5) Terminate the corporationâs authority to remain a corporation authorized pursuant to the California Small Business Development Corporation Law (Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of Title 1 of the Corporations Code) and this chapter. (d) The program manager shall make one of the determinations specified in subdivision (c) within 30 days of the effective date of the temporary suspension notice, unless the corporation and the program manager mutually agree to an extension. If the program manager does not make any determinations within 30 days, the temporary suspension shall be negated. The corporationâs yearly contract shall remain in effect during the period of temporary suspension, and the corporation shall continue to receive reimbursement of necessary operating expenses. (e) The actions contained in paragraphs (3) to (5), inclusive, of subdivision (c) require a finding that irreparable harm will occur unless the action is taken, and a finding that the corporation has failed to comply with the California Small Business Development Corporation Law (Chapter 1 (commencing with Sectio
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