§211D-8 - State's rights with respect to reserve account.
[§211D-8] State's rights with respect toreserve account. (a) All of the money in a reserve account establishedunder this chapter is property of the State.
(b) The State is entitled to earn interest onthe amount of contributions made by the department, borrower, and institutionto a reserve account under this chapter. The department shall withdraw monthlyor quarterly from a reserve account the amount of the interest earned by theState. The department shall deposit the amount withdrawn under this sectioninto the fund.
(c) If the amount in a reserve account exceedsan amount equal to thirty-three per cent of the balance of the financialinstitution's outstanding capital access loans, the department may withdraw theexcess amount and deposit the amount in the fund. A withdrawal of moneyauthorized under this subsection may not reduce an active reserve account to anamount that is less than $200,000.
(d) The department shall withdraw from theinstitution's reserve account the total amount in the account and any interestearned on the account and deposit the amount in the fund when:
(1) A financial institution is no longer eligible toparticipate in the program or a participation agreement entered into under thischapter expires without renewal by the department or institution; and
(2) The financial institution has no outstandingcapital access loans. [L 2000, c 290, pt of §2]