- (a) Purpose. The purpose of this section is to inform Persons or entities requesting Form(s) 8609, application amendments, LURA amendments, contract amendments, contract extensions, contract renewals or loan modifications that, if fees or loan payments are past due to the Department, the request may be delayed or terminated.
- (b) Definitions. Capitalized words used herein have the meaning assigned in §10.3 of this title (relating to Definitions), or assigned by federal or state law.
- (c) Except in the case of interim construction loans, the Department will not issue Form(s) 8609, amend applications, LURAs or contracts, extend or renew contracts or modify loan documents if fees or loan payment are past due to the Department related to the subject of the request.
- (d) Once the Department notifies a Person or entity that they are responsible for the payment of a required fee or loan balance that is past due, if no corrective action is taken within five (5) business days of notification, the Executive Director may deny the requested action for failure to comply with this rule.
- (e) Exception for work outs. If fees or loan payments affiliated with a work out are past due, then the past due amounts affiliated with a work out may be excepted from this rule so long as the work out is actively underway by Department staff. In which case, in the Department's sole discretion, LURA or any other kinds of amendments may be considered for the subject Development or Contract.
- (f) In accordance with §1.5 of this subchapter (relating to Previous Participation Reviews), if a Person or entity applies for funding or an award from the Department, any payment of principal or interest to the Department that is past due beyond any grace period provided for in the applicable loan documents and any past due fees (not just those related to the subject of the request) will be reported to the Executive Award Review Advisory Committee.
Source Note:The provisions of this §1.21 adopted to be effective June 10, 2007, 32 TexReg 2985; amended to be effective January 2, 2014, 38 TexReg 9491.