SECTION 200.6. Ownership, Control, Investment of Loan Loss Reserve Account

(a) All money in a Loan Loss Reserve Account established under this Program is property of the State of Texas.

(b) The state is entitled to all interest earned on the contributions made by the Office, Borrower, and PFI to the Loan Loss Reserve Account.

(c) In accordance with the Agreement, the Office may periodically withdraw the amount of interest earned from the funds in the Loan Loss Reserve Account.

(d) The Office shall deposit the amount withdrawn under subsection (c) of this section into an account designated by the Office.

(e) The Office may withdraw from a PFI's Loan Loss Reserve Account all interest earned in the Loan Loss Reserve Account and all contributions made by the Office to the account that relate to an Enrolled Loan if the Office discovers after enrollment that the Enrolled Loan involves a Borrower whose business activities violate or are contrary to the requirements of this chapter or the law or policies of this state or the United States.

Source Note: The provisions of this §200.6 adopted to be effective June 25, 2023, 48 TexReg 3217