Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 5 - OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM OFFICE › Chapter 187 - CAPITAL ACCESS PROGRAM › Section 187.6 - Application Procedure for Financial Institutions To Become Participating Financial Institutions

Current through Reg. 49, No. 28; July 12, 2024
(a) A financial
				institution must complete and remit to the Office a participation agreement,
				developed by the Office, to enroll loans under the program.
(b) The participation agreement shall provide
				for:
(1) the creation of the reserve account
				by the Office for the benefit of the participating financial
				institution;
(2) the limitation of
				liability of the state of Texas and the Office to the balance held in reserve
				of a participating financial institution;
(3) the terms and conditions of the loans
				under the program to be determined solely by agreement of the lender and
				borrower;
(4) the enrollment of
				qualified loans into the program;
(5) the deposit of funds by the eligible
				applicant, the participating financial institution, and subject to availability
				in the fund, the Office, into a reserve account when the participating
				financial institution makes an eligible capital access loan;
(6) a claims process for reimbursement of
				losses incurred from charge-offs under the program;
(7) removal of money from the reserve account
				to offset losses incurred through the program;
(8) disposition of any recoveries from a
				borrower made by the participating financial institution subsequent to being
				reimbursed by the Office;
(9)
				conditions for subrogation of the Office, at the Office's request, to the
				rights of the participating financial institution in collateral, personal
				guarantees, and all other forms of security for the capital access
				loan;
(10) conditions for the
				withdrawal by the Office of excess balances in the reserve account;
(11) conditions for the withdrawal by the
				Office of interest earned within the reserve account;
(12) conditions for termination of the
				participation agreement, and disposition by the Office of any remaining balance
				in the reserve account;
(13)
				termination by the Office of the obligation to enroll eligible borrowers into
				the program;
(14) withdrawal by a
				participating financial institution from the program, and disposition by the
				Office of any remaining balance in the reserve account;
(15) periodic reporting to the Office by the
				participating financial institution as required by the Office;
(16) inspection by the Office of the
				pertinent files of the participating financial institution relating to
				qualified eligible borrowers;
(17)
				transmittal to the Office by participating financial institution of any public
				information directly relating to the institution's participation in the
				program;
(18) the submission of an
				annual report by the participating financial institution to the department
				containing the information required by Chapter 481, Subchapter BB,
				§481.411;
(19) the delivery of
				financial statements of the financial institution as available for the previous
				three years to the department;
(20)
				such other terms and conditions as may be required by the department.