Pub. Resources Code, § 4796

(a) The director may make the following types of loans relating to forest resource improvement projects:

(1) The director may make loans for forest resource improvement work to cover all or part of a smaller nonindustrial landowner’s cost share payment required pursuant to Section 4795. The director shall establish reasonable terms relating to the length of, and the interest rate for, a loan made pursuant to this subdivision. In order to secure repayment of the loan, the forest resource improvement loans shall be secured by a mortgage or deed of trust upon the parcel of land to which the forest improvement project applies. The director shall record the mortgage or deed of trust in the office of the county recorder in the county in which the real property subject to the resource improvement loan is located.

(2) (A) The director may make loans for forest resource improvement work to landowners eligible pursuant to the provisions of subdivision (d) of Section 4797 for up to 100 percent of the lesser of either:

(i) The landowner’s actual cost per acre to accomplish the work.

(ii) The prevailing cost per acre as determined by the director pursuant to Section 4799.02.

(B) A loan made pursuant to this subdivision may be made for a term not exceeding 20 years and shall bear interest at the prevailing rate. In order to secure repayment of the loan, the forest resource improvement loans shall be secured by a mortgage or deed of trust upon the parcel of land to which the forest improvement project applies. The director shall record the mortgage or deed of trust in the office of the county recorder in the county in which the real property subject to the resource improvement loan is located.

(b) Any loan made pursuant to this section may be paid prior to the maturity date set forth in the loan agreement without an interest penalty being charged to the landowner.

(c) Payment of all or part of the principal and interest due under loans made pursuant to this chapter shall not be required upon a finding by the board that the parcel to which a forest resource improvement project applies, and that is subject to a loan, satisfies both of the following conditions:

(1) The parcel has been substantially damaged by fire, flood, insects, disease, or other natural causes.

(2) The damage was not caused by the negligence or willful act of the landowner.