RULE §181.10 Loan Administration


Published: 2015

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(a) Loan servicing. The Office shall perform all loan
administration services for the program loan except for the receipt
of loan payments.
(b) Loan payments. All payments of principal and interest
and any prepayments on the program loan shall be payable by the EDC
by wire transfer to the Trustee on the first business day of each
month.
(c) Principal and interest payment adjustments. The
program loan shall provide for equal monthly principal and interest
payments. Payment amounts shall be adjusted by the Office upon a change
in interest rate or a prepayment to amortize the loan over its original
term.
(d) Other payments. All repayments to the EDC under
any loan, lease or sale agreement to any user in excess of the scheduled
payments provided by such agreements, including prepayments, proceeds
of condemnation awards, foreclosure proceeds, insurance payments or
other monies not reinvested in the collateral, or proceeds from the
disposition of an asset, shall be used by the EDC to prepay a like
principal amount on the program loan.
(e) Reporting. The EDC shall provide to the Office
within 15 days after the end of each quarter ending November 30, February
28 (or February 29 during a leap year), May 31, and August 31, the
following written reports:
  (1) A quarterly payment status report, including the
principal and interest balance outstanding on the program loan, and
all indebtedness of the EDC secured by the economic development sales
and use tax; and
  (2) Quarterly reports on the rating, economic development
sales and use tax revenues, and the "Debt Service Coverage Ratio"
of the city, which shall also take into account any parity debt incurred
after the date of the program loan.


Source Note: The provisions of this §181.10 adopted to be effective March 27, 1997, 22 TexReg 2871; amended to be effective December 10, 2001, 26 TexReg 10054; amended to be effective August 5, 2012, 37 TexReg 5730