Texas Administrative Code
Title 10 - COMMUNITY DEVELOPMENT
Part 5 - OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM OFFICE
Chapter 200 - TEXAS SMALL BUSINESS CREDIT INITIATIVE
Subchapter A - TEXAS SMALL BUSINESS CREDIT INITIATIVE CAPITAL ACCESS PROGRAM
Section 200.5 - Establishment of a Loan Loss Reserve Account

Universal Citation: 10 TX Admin Code § 200.5

Current through Reg. 49, No. 12; March 22, 2024

(a) After entering an Agreement with the Office, a PFI making Qualified Loans shall establish a Loan Loss Reserve Account to receive the premium payments described in § 200.9 of this chapter (relating to Contributions to Loan Loss Reserve) from the Borrower and the PFI, and the Office's matching contribution as described in § 200.11 of this chapter (relating to State Contributions to Loan Loss Reserve Accounts).

(b) The Loan Loss Reserve Account shall be:

(1) used by the PFI only to cover Losses arising from a charge off of an Enrolled Loan or as provided by the Agreement or this subchapter; and

(2) established in a money market fund in a Financial Institution specified by the Office; the interest rate for the money market fund must be a competitive rate.

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