SECTION 187.2. Definitions

The following words and terms, when used in this chapter, shall have the following meanings, unless the context indicates otherwise.

(1) Capital access loan--A loan, or portion of a loan, that is entitled to be secured by the fund.

(2) Child-care provider--A small or medium size business or a nonprofit organization that operates or proposes to operate a day-care center or group day-care home, as those terms are defined by Texas Human Resources Code, §42.002.

(3) Eligible applicant--A small or medium size business or nonprofit organization.

(4) Enrollment form--A form remitted to the Office, by a participating financial institution, subsequent to loan funding by the financial institution, to receive the state's contribution to the institution's reserve account.

(5) Enterprise Zone--A geographic area designated by a city or county, through an application to the Office, as economically distressed pursuant to Chapter 2303, Texas Government Code.

(6) Financial institution--A bank, trust company, banking association, savings and loan association, mortgage company, investment bank, credit union, or nontraditional financial institution.

(7) Fund--The capital access fund.

(8) Inside bank transactions--Loans to insiders of the financial institution as defined by federal laws and regulations concerning insider transactions including the Financial Institutions Regulatory and Interest Rate Control Act of 1978, as amended, and applicable implementing regulations; the 1982 Banking Act, as amended, and applicable implementing regulations; and the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended, and applicable implementing regulations.

(9) Loan--Includes a line of credit and must meet the requirements of Texas Government Code, §481.405(e).

(10) Medium business--A corporation, partnership, sole proprietorship, or other legal entity that:

(A) is domiciled in this state or has at least 51% of its employees located in this state;

(B) is formed to make a profit;

(C) is independently owned and operated; and

(D) employs 100 or more but fewer than 500 full-time employees.

(11) Money market fund--An open-ended management investment company regulated under the Investment Company Act of 1940, as amended, which values its securities pursuant to §270, 2a-7 of Title 17 of the Code of Federal Regulations.

(12) Nonprofit organization--A private, nonprofit, tax-exempt corporation, association, or organization listed in §501(c)(3), Internal Revenue Code of 1986, that is domiciled in this state or has at least 51% of its members located in this state.

(13) Office--The Economic Development and Tourism Office in the Office of the Governor.

(14) Partial enrollment--A loan which is not 100% enrolled into the program.

(15) Participating financial institution--A financial institution participating in the program, after entering into a participation agreement with the Office.

(16) Participation agreement--The agreement between the financial institution and the Office which allows the financial institution to participate in the program.

(17) Program--The capital access program.

(18) Reserve account--An account established at a participating institution on approval of the Office in which the money is deposited to serve as a source of additional revenue to reimburse the financial institution for losses on loans enrolled in the program.

(19) Small business--A corporation, partnership, sole proprietorship, or other legal entity that:

(A) is domiciled in this state or has at least 51% of its employees located in this state;

(B) is formed to make a profit;

(C) is independently owned and operated; and

(D) employs fewer than 100 full-time employees.

Source Note: The provisions of this §187.2 adopted to be effective September 15, 1997, 22 TexReg 8967; amended to be effective August 5, 2012, 37 TexReg 5735