1. (a) All of the money in a reserve account established under this program is property of the state.
2. (b) The state is entitled to earn interest on the amount of contributions made by the department, eligible applicant, and financial institution to a reserve account.
3. (c) The department shall withdraw monthly or quarterly from a reserve account the amount of interest earned by the state.
4. (d) The department shall deposit the amount withdrawn into the fund.
5. (e) If the amount in a reserve account exceeds 33% of the balance of the financial institution's outstanding capital access loans, the department may withdraw the excess amount and deposit the amount in the fund. A withdrawal of money authorized here under may not reduce an active reserve account to less than $200,000.
6. (f) Withdrawal of reserves in accordance with subsection (c) of this section shall be based on information provided by the participating financial institution in its annual report to the department.

7. (g) The department shall withdraw from the financial institution's reserve account all principal and interest and deposit it into the fund when all three of the subsequent conditions exist:

   1. (1) a financial institution is no longer eligible to participate in the program or a participation agreement entered into under the program expires without renewal by the department or financial institution;
   2. (2) the financial institution has no outstanding capital access loans; and
   3. (3) the financial institution has not made a capital access loan within the preceding 24 months.
8. (h) The department may inspect the files of a participating financial institution with regard to loans enrolled under the program during normal business hours.

Source Note:The provisions of this §187.14 adopted to be effective September 15, 1997, 22 TexReg 8967.