Texas Government Code 489.252 – Texas Small and Rural Community Success Fund
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(a) The Texas small and rural community success fund is created as a trust fund held outside the state treasury by the comptroller as trustee. The comptroller shall hold money in the fund in escrow and in trust for and on behalf of the bank and the owners of bonds issued under § 489.253.
(b) The fund consists of:
(1) proceeds from the issuance of bonds under § 489.253;
(2) payments of principal and interest on loans made under this subchapter;
(3) loan origination fees imposed on loans made under this subchapter;
(4) investment earnings described by Subsection (e); and
(5) any other money received by the bank under this subchapter.
Terms Used In Texas Government Code 489.252
- Comptroller: means the state comptroller of public accounts. See Texas Government Code 312.011
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Trustee: A person or institution holding and administering property in trust.
(c) The fund may be used only:
(1) to make loans to economic development corporations for eligible projects as authorized by Chapters 501, 504, and 505, Local Government Code;
(2) to pay the bank’s necessary and reasonable costs of administering the program established by this subchapter, including the payment of letter of credit fees and credit rating fees;
(3) to pay the principal of and interest on bonds issued under § 489.253;
(4) to pay reasonable fees and other costs incurred by the bank in administering the fund; and
(5) for any other purpose authorized by this subchapter.
(d) The bank, in coordination with the comptroller, may provide for the establishment and maintenance of separate accounts or sub-accounts in the fund, including interest and sinking accounts, reserve accounts, program accounts, or other accounts. The accounts and sub-accounts must be kept and held in escrow and in trust as provided by Subsection (a).
(e) Pending use, the comptroller may invest and reinvest the money in the fund in investments authorized by law for state funds. Earnings on the investments shall be credited to the fund.
(f) The bank may use money in the fund for the purposes specified by and according to the procedures established by this subchapter. This state may take action with respect to the fund only as specified by this subchapter and only in accordance with the resolutions of the executive director of the office adopted under § 489.253.