SECTION 177.7. Monitoring and Reporting Requirements

(a) Any user under the program will be required to meet reporting and compliance requirements, as set out in the agreement between the user and the bank, including, but not limited to:

(1) annual submission of audited fiscal year end financial statements;

(2) annual update, including but not limited to efforts and progress toward commercialization;

(3) the use of money distributed through either fund;

(4) notification within 10 days of a user's name change or any other non-material change in the user's product or business;

(5) notification in advance of any anticipated material change to the user's product or business; and

(6) notification within five days of any material change to the user's product or business.

(7) In the event of a name change, sale, or assumption, or similar change, notification to the bank must include a copy of the certificate of amendment to the articles of incorporation, and/or the d/b/a statement under which the user operates, filed with the Texas Secretary of State, as applicable.

(b) Projects may be subject to on site monitoring visits, by the board, the bank or its designee. Such visits shall occur during normal working hours, upon reasonable notice, and be conducted in a manner that is consistent with obligations of confidentiality and workplace safety.

Source Note: The provisions of this §177.7 adopted to be effective May 29, 2005, 30 TexReg 3089