Texas Administrative Code
Title 10 - COMMUNITY DEVELOPMENT
Part 5 - OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM OFFICE
Chapter 181 - TEXAS LEVERAGE FUND PROGRAM
Section 181.10 - Loan Administration

Universal Citation: 10 TX Admin Code ยง 181.10

Current through Reg. 49, No. 38; September 20, 2024

(a) Loan servicing. The Office shall perform all loan administration services for the program loan except for the receipt of loan payments.

(b) Loan payments. All payments of principal and interest and any prepayments on the program loan shall be payable by the EDC by wire transfer to the Trustee on the first business day of each month.

(c) Principal and interest payment adjustments. The program loan shall provide for equal monthly principal and interest payments. Payment amounts shall be adjusted by the Office upon a change in interest rate or a prepayment to amortize the loan over its original term.

(d) Other payments. All repayments to the EDC under any loan, lease or sale agreement to any user in excess of the scheduled payments provided by such agreements, including prepayments, proceeds of condemnation awards, foreclosure proceeds, insurance payments or other monies not reinvested in the collateral, or proceeds from the disposition of an asset, shall be used by the EDC to prepay a like principal amount on the program loan.

(e) Reporting. The EDC shall provide to the Office within 15 days after the end of each quarter ending November 30, February 28 (or February 29 during a leap year), May 31, and August 31, the following written reports:

(1) A quarterly payment status report, including the principal and interest balance outstanding on the program loan, and all indebtedness of the EDC secured by the economic development sales and use tax; and

(2) Quarterly reports on the rating, economic development sales and use tax revenues, and the "Debt Service Coverage Ratio" of the city, which shall also take into account any parity debt incurred after the date of the program loan.

Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.