LAC 19:VII.7211 – Establishing a Loss Reserve Account

A. Upon the execution of the agreement with the participating financial institution, the lender shall establish a loss reserve account to receive all fees from the borrower and the lender. The lender's loss reserve account shall be domiciled with a financial institution in the form of an insured, interest-bearing deposit in accordance with statutory requirements.
B. LEDC's loss reserve account will be established as an account controlled by LEDC.

AUTHORITY NOTE: Promulgated in accordance with R.S. 51:2312 (A)(7), (B)(1) and (B)(3).

HISTORICAL NOTE: Promulgated by the Department of Economic Development, Louisiana Economic Development Corporation, LR 26:2249 (October 2000).