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 200.2 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this Subchapter, shall
													 have the following meanings, unless the context clearly indicates otherwise:
(1) Agreement--A contract between a Financial Institution and the Office
											  that authorizes the Financial Institution to participate in the Program and establishes, in accordance with
											  §
										200.4 of this chapter (relating to Agreement), the terms
											  required for the Financial Institution's participation.
(2)
											  Borrower--A Qualified Business that has received a Qualified Loan from a Participating Financial
											  Institution.
(3) Enrolled Loan--A Qualified Loan enrolled in the
											  Program as described in §
										200.10 of this chapter (relating to Procedure for Enrollment of
											  a Qualified Loan).
(4) Financial Institution--An insured
											  depository institution, insured credit union, or Community Development Financial Institution, as each of
											  those terms is defined in 12 U.S.C. §
											4702.
(5) Fund--The Texas Small
											  Business Credit Initiative Capital Access Fund.
(6) Loan Loss
											  Reserve Account--An account established at a financial institution in which premiums are deposited to serve
											  as insurance to reimburse a Participating Financial Institution for Losses on Enrolled Loans.
(7) Loss--Any original principal amount due and not paid and not more than
											  the enrolled amount of the Qualified Loan plus reasonable out-of-pocket expenses. In the event only a portion
											  of a Qualified Loan was enrolled, the Office limits reimbursement of out-of-pocket expenses to the ratio of
											  the enrolled portion to the total loan amount.
(8) Office--The
											  Economic Development and Tourism Office in the Office of the Governor.
(9) Participating Financial Institution or PFI--A Financial Institution
											  authorized to conduct business in the State of Texas that has adequate capacity, as determined by the Office
											  in its sole discretion, to underwrite and monitor loans and has executed an Agreement with the Office to
											  participate in the Program.
(10) Principal of a Borrower--A
											  person, other than an insured bank, that directly or indirectly, or acting through or in concert with one or
											  more persons, owns, controls, or has the power to vote more than 10 percent of any class of voting securities
											  of a member bank or company. Shares owned or controlled by a member of an individual's immediate family are
											  considered to be held by the individual.
(11) Principal of a
											  Lender--The principal of a lender is:
(A) If a sole proprietorship, the
											  proprietor;
(B) If a partnership, each partner; and
(C) If a corporation, limited liability company, association or a
											  development company, each director, each of the five most highly compensated executives, officers or
											  employees of the entity, and each direct or indirect holder of twenty percent or more of the ownership stock
											  or stock equivalent of the entity.