SECTION 33.406. Repayment of Funds Released from Reserve Fund Escrow Account

(a) The provider must repay the reserve fund escrow account the amount released or withdrawn not later than 18 months after it is released or withdrawn. The provider shall notify the department of the repayment by completing and returning CCRC Form #11 (Notice by Provider of Repayment of Previously Released Funds to the Reserve Fund Escrow Account).

(b) When the funds have been repaid, the escrow agent shall submit to the department a completed CCRC Form #12 (Affidavit of Repayment of Previously Released Funds to the Reserve Escrow Account).

(c) The escrow agent shall notify the department if the provider fails to repay the amount released within the time required within 30 days of the date the repayment was due.

(d) If the provider fails to timely repay the amount released to the loan reserve escrow account, the department may take action against the provider including but not limited to disciplinary action under the Insurance Code, Article 1.10, §7.

Source Note: The provisions of this §33.406 adopted to be effective March 14, 1996, 21 TexReg 1770.