SECTION 200.108. Encumbrance of Funds

(a) Subject to subsection (b) of this section, for each Enrolled Loan, the Office shall encumber an amount in the Fund up to the Guaranteed Amount specified in §200.107 of this chapter (relating to Loan Guarantee Maximums; Procedure for Enrollment of a Qualified Loan) for the Enrolled Loan and attribute that encumbrance to the Enrolled Loan.

(b) The Office shall not encumber the full amount specified in subsection (a) of this section if:

(1) the Fund does not contain an amount of money greater than or equal to the amount to be encumbered, in which case the Office may encumber up to the balance of the Fund; or

(2) the amount to be encumbered is more than $4,000,000, in which case the Office may encumber up to $4,000,000.

(c) Notwithstanding any provision to the contrary, the Office may unencumber any encumbered amounts related to loans the Office, in its sole discretion, has determined are ineligible for reimbursement or for other good cause. If the encumbered amounts have been reported to Treasury, the Office shall promptly inform Treasury of the unencumbrance. The Office may use any unencumbered funds to guarantee any other Qualified Loan.

Source Note: The provisions of this §200.108 adopted to be effective June 25, 2023, 48 TexReg 3217