Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 5 - OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM OFFICE › Chapter 187 - CAPITAL ACCESS PROGRAM › Section 187.13 - Withdrawals from Reserves by Participating Institutions

Current through Reg. 49, No. 28; July 12, 2024
(a) In the event a loan enrolled under this
				program is charged-off, the participating financial institution may withdraw
				from its established reserve account an amount necessary to cover the
				anticipated loss.
(b) A
				participating financial institution, with the Office's approval, may withdraw
				from its established reserve immediately subsequent to loan charge-off that has
				been approved by the Office, or the institution may choose to attempt further
				collection proceedings before withdrawal. So long as the lender has notified
				the Office of the charge-off of an enrolled loan within the allowed 30 day time
				frame and the reserves are adequate to cover the charge-off at the time of
				notification, the lender shall not be limited to how long they may delay a
				claim for reimbursement. However, accrual of interest on charged-off loans will
				only be allowed for a time period of 180 days subsequent to charge-off.
				Recoupment of all other expenses, as is reasonable and necessary, shall be
				allowed to be claimed by the financial institution through its established
				reserve account.
(c) Only
				non-recoverable losses, plus reasonable and customary expenses, may be removed
				from the reserve account. Money taken in excess of this amount must be returned
				immediately to the reserve account. The financial institution must pursue
				recovery of claimed amounts, unless otherwise noted on the claim form. The
				financial institution shall notify the Office within thirty calendar days of
				any subsequent recovery made on any loan upon which a claim has been
				made.
(d) The reserve account shall
				be used by the financial institution only to cover any losses arising from a
				charge-off of a capital access loan, or that portion of a partially enrolled
				loan that is enrolled under the program, made by the financial
				institution.
(e) Partially enrolled
				loan amounts and enrolled loans sharing collateral or guarantees shall be
				subordinated to unenrolled portions and loans for purposes of claim subsequent
				to charge-off.
(f) The financial
				institution shall maintain records substantiating the non-recoverable losses,
				plus reasonable and necessary expenses, for three years following withdrawal
				from the program.
(g) A claim form,
				signed and dated by an authorized officer of the financial institution, must be
				remitted to the Office detailing the charged-off program loan 30 days prior to
				the charge-off. Claim forms will contain the following information:
(1) borrower's name;
(2) loan number used by the bank to identify
				the loan;
(3) date of
				charge-off;
(4) amount of claim,
				broken down to include:
(A) customer
				principal;
(B) accrued/unpaid
				interest;
(C) out-of-pocket
				expenses; and
(D) total claim
				amount.
(5) statement of
				intent by the financial institution concerning its continued efforts to recover
				the charged-off loan;
(6) statement
				of intent by the financial institution on whether to claim against the reserves
				as outlined on the form submitted or to request payment on the claim at a later
				date;
(7) authorized signature,
				title, date and phone number of officer of the submitting financial
				institution.