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RULE §187.8Enrollment of Loans into the Program

(a) Reserve deposits will not be remitted by the Office to the reserve account of participating financial institution until the receipt of an enrollment form by the institution.

(b) An enrollment form shall be sent to the Office within 15 business days of loan origination. Origination is considered to be the earlier of the date the loan documents have been executed or the date the loan proceeds are first forwarded to the eligible borrower.

(c) The enrollment form submitted by participating institutions, developed by the Office, shall include at least the following information as well as other information the Office may require:

  (1) name, address, phone and contact of the participating financial institution;

  (2) name, address, phone and contact of the eligible borrower;

  (3) certification that to the best of the participating institution's knowledge the borrower is eligible under program guidelines;

  (4) the total loan amount being made by the financial institution to the borrower;

  (5) the amount of the loan being enrolled in the program;

  (6) business description;

  (7) description of use of loan proceeds;

  (8) employment information of the eligible borrower;

  (9) gross sales of the eligible borrower for the past 12 months;

  (10) ethnicity and gender of borrower;

  (11) whether borrower is a certified State of Texas historically underutilized business;

  (12) if applicable, verification of status as a project within an enterprise zone, or for day-care center or group day-care home;

  (13) amount of participating financial institution's deposit to reserve;

  (14) amount of eligible borrower's deposit to reserve;

  (15) calculation of the Office's contribution to reserve;

  (16) execution of the certification on behalf of the participating financial institution by an authorized officer, which shall include the officer's name, title and the date of execution.

(d) Execution of the enrollment form shall imply that all information provided on this form is true and correct, and that the lender is relying on the representation of the borrower for the following numbered items of the enrollment form: (2), (3), (6), (7), (8), (9), (10), (11), and (12).

(e) The Office may, but is not required, to notify participating financial institutions when proceeds available in the fund soon may not be sufficient to meet the demand for reserve contributions.

(f) If proceeds within the fund are insufficient to provide reserve contributions to participating financial institutions, those institutions may still enroll loans without the additional state contribution, subject to normal enrollment guidelines.

Source Note: The provisions of this §187.8 adopted to be effective September 15, 1997, 22 TexReg 8967; amended to be effective October 31, 2002, 27 TexReg 10010; amended to be effective August 5, 2012, 37 TexReg 5735

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