SECTION 187.10. Establishment of the Reserve Account and Purpose

(a) On approval of the Office and after entering into a participation agreement with the Office, a participating financial institution making a capital access loan shall establish a reserve account in accordance with the provisions of Texas Government Code, Chapter 481, Subchapter BB, §481.408.

(b) Reserve accounts shall be established in a money market fund within the participating financial institution. The interest rate for the money market fund shall be the competitive rate offered to other customers of the financial institution invested in the money market fund.

(c) 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 a loan partially enrolled under the program, made by the financial institution.

Source Note: The provisions of this §187.10 adopted to be effective September 15, 1997, 22 TexReg 8967; amended to be effective October 31, 2002, 27 TexReg 10010; amended to be effective August 5, 2012, 37 TexReg 5735