The following words and terms, when used in this chapter, shall
have the following meanings, unless the context indicates otherwise.
(1) Capital access loan--A loan, or portion of a loan,
that is entitled to be secured by the fund.
(2) Child-care provider--A small or medium size business
or a nonprofit organization that operates or proposes to operate a
day-care center or group day-care home, as those terms are defined
by Texas Human Resources Code, §42.002.
(3) Eligible applicant--A small or medium size business
or nonprofit organization.
(4) Enrollment form--A form remitted to the Office,
by a participating financial institution, subsequent to loan funding
by the financial institution, to receive the state's contribution
to the institution's reserve account.
(5) Enterprise Zone--A geographic area designated by
a city or county, through an application to the Office, as economically
distressed pursuant to Chapter 2303, Texas Government Code.
(6) Financial institution--A bank, trust company, banking
association, savings and loan association, mortgage company, investment
bank, credit union, or nontraditional financial institution.
(7) Fund--The capital access fund.
(8) Inside bank transactions--Loans to insiders of
the financial institution as defined by federal laws and regulations
concerning insider transactions including the Financial Institutions
Regulatory and Interest Rate Control Act of 1978, as amended, and
applicable implementing regulations; the 1982 Banking Act, as amended,
and applicable implementing regulations; and the Financial Institutions
Reform, Recovery and Enforcement Act of 1989, as amended, and applicable
implementing regulations.
(9) Loan--Includes a line of credit and must meet the
requirements of Texas Government Code, §481.405(e).
(10) Medium business--A corporation, partnership, sole
proprietorship, or other legal entity that:
(A) is domiciled in this state or has at least 51%
of its employees located in this state;
(B) is formed to make a profit;
(C) is independently owned and operated; and
(D) employs 100 or more but fewer than 500 full-time
employees.
(11) Money market fund--An open-ended management investment
company regulated under the Investment Company Act of 1940, as amended,
which values its securities pursuant to §270, 2a-7 of Title 17
of the Code of Federal Regulations.
(12) Nonprofit organization--A private, nonprofit,
tax-exempt corporation, association, or organization listed in §501(c)(3),
Internal Revenue Code of 1986, that is domiciled in this state or
has at least 51% of its members located in this state.
(13) Office--The Economic Development and Tourism Office
in the Office of the Governor.
(14) Partial enrollment--A loan which is not 100% enrolled
into the program.
(15) Participating financial institution--A financial
institution participating in the program, after entering into a participation
agreement with the Office.
(16) Participation agreement--The agreement between
the financial institution and the Office which allows the financial
institution to participate in the program.
(17) Program--The capital access program.
(18) Reserve account--An account established at a participating
institution on approval of the Office in which the money is deposited
to serve as a source of additional revenue to reimburse the financial
institution for losses on loans enrolled in the program.
(19) Small business--A corporation, partnership, sole
proprietorship, or other legal entity that:
(A) is domiciled in this state or has at least 51%
of its employees located in this state;
(B) is formed to make a profit;
(C) is independently owned and operated; and
(D) employs fewer than 100 full-time employees.
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