1. (a) Upon receipt of the certified enrollment form from the financial institution, the department shall review the form and determine:

   1. (1) the current availability of funds under the program;
   2. (2) the completeness of the form;
   3. (3) the eligibility of the applicant and the financial institution;
   4. (4) the qualified use of the proceeds;
   5. (5) the amount of deposit to be placed into the reserve account by the department; and
   6. (6) compliance with statutes and rules.
2. (b) The department shall notify the participating financial institution of any deficiencies on the enrollment form within three business days after receipt of the application. The participating financial institution may amend the form to comply with the department's comments or withdraw the loan from consideration under the program.
3. (c) Only when an enrollment form is considered complete by the department will allocation be made to the participating financial institution's reserve account. An enrollment form that has been returned from the department to a participating financial institution shall not constitute a claim to department contributions to the financial institution's reserves.

Source Note:The provisions of this §187.9 adopted to be effective September 15, 1997, 22 TexReg 8967.