LAC 19:VII.7211. Establishing a Loss Reserve Account

A. Upon the execution of the agreement with the participating financial institution, the lender shall establish a loss reserve account to receive all fees from the borrower and the lender. The lender's loss reserve account shall be domiciled with a financial institution in the form of an insured, interest-bearing deposit in accordance with statutory requirements. B. LEDC's loss reserve account will be established as an account controlled by LEDC.