Section 200.5 - Establishment of a Loan Loss Reserve Account(a) After entering an Agreement with the Office, a PFI making Qualified Loans shall establish a Loan Loss Reserve Account to receive the premium payments described in § 200.9 of this chapter (relating to Contributions to Loan Loss Reserve) from the Borrower and the PFI, and the Office's matching contribution as described in § 200.11 of this chapter (relating to State Contributions to Loan Loss Reserve Accounts).(b) The Loan Loss Reserve Account shall be:(1) used by the PFI only to cover Losses arising from a charge off of an Enrolled Loan or as provided by the Agreement or this subchapter; and(2) established in a money market fund in a Financial Institution specified by the Office; the interest rate for the money market fund must be a competitive rate.10 Tex. Admin. Code § 200.5
Adopted by Texas Register, Volume 48, Number 24, June 16, 2023, TexReg 3220, eff. 6/25/2023