(a) For purposes of this chapter, “qualifying unpaid matured loan” shall mean either of the following:
(1) A loan made pursuant to the programs listed in subdivision (a) of Section 50560 that is in material compliance, as determined by the department, with all loan terms and conditions, including, but not limited to, those required by the department loan documents or applicable statutes and regulations, or otherwise required by the department, other than having reached the due date of its promissory note without being paid.
(2) A matured loan that is not in compliance, as described in paragraph (1), and is being transferred to another borrower approved by the department.
(b) A reinstatement of a qualifying unpaid matured loan under this chapter shall be treated as if its term has been extended from the expired due date for purposes of calculating obligations of the borrower to the department.
(Added by Stats. 2014, Ch. 680, Sec. 5. (AB 2161) Effective January 1, 2015.)