Tenn. Comp. R. & Regs. 0770-04-02-.20 - DEPOSITS AND INTEREST
(1)
Funding. Funding from state portion will be provided as loans
are made. Upon receipt of a request for funding for each loan, THDA shall,
after review and approval of the loan, request that a warrant be drawn to fund
the state portion of the loan. The warrant shall be forwarded to the
administering county and shall be made payable to the borrower and to the
closing agent. THDA may provide the initial funding from its account and
subsequently be reimbursed from the state portion.
(2)
Deposits and Repayments of Loans
made pursuant to the Program. Pursuant to T.C.A. 13-23-309, any
repayment of a loan made pursuant to this program shall be divided into a state
and local share in the same proportion as the source of money used to fund the
loan. The administering county shall designate in writing the name of the
financial institution into which both state and local shares of the repayments
are to be deposited. The administering county shall provide evidence of their
account for the local share of the funds. Thereafter, the state shall designate
an account in the same financial institution for the state share. Upon receipt
of the repayments, the administering county or the servicer shall deposit the
local share into the local account and the state share into the state account.
This rule applies to funds appropriated pursuant to Public Chapters 510 and
511, Acts 1986. The local government or the servicers shall forward the deposit
receipt for the state share so deposited to THDA. The local government shall
forward a copy of the deposit receipt for the local deposit to THDA.
(3)
Accounts and Interests.
The account established pursuant to subsection 2 above for deposit of the local
share of repayments shall be in an interest bearing account. The state shall
establish a separate account within the state treasury designated as the
Homebuyers Revolving Loan Fund Program Account which shall be managed in
accordance with T.C.A. §9-4-603. All funds belonging to
this account shall remain with the program for its statutory purposes. THDA
shall administer the Revolving Loan Fund Program account and shall maintain
separate accounting records on such accounts. Loans made from the repayments
and the interest theron shall be funded by checks or warrants payable on the
respective accounts. THDA, after review and approval of the loan requests to be
funded from repayment of previous loans, shall make a check payable to the
closing agent and the borrower from the state account in the same manner as
provided in subsection 1.
Notes
Authority: Public Acts of 1986, Chapter 510. T.C.A. § 13-23-301 et seq.
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