LAC 19:VII.7213. Ownership, Control, Investment of Loss Reserve Account

A. All moneys in a loss reserve account held at and by the bank are to be used exclusively for this program by the bank. The LEDC may withdraw funds from a loss reserve account only as provided for in these rules. B. Any earnings on the balance in a loss reserve account are deemed to be part of the loss reserve account up to 10 percent above the present maximum portfolio exposure. C. The LEDC may withdraw at any time and for use as deemed appropriate by the LEDC a maximum of 100 percent of all earnings that have been credited to the loss reserve account over the present portfolio exposure, with such withdrawal limited to a maximum of 100 percent of earnings credited to the loss reserve account since the last such withdrawal. D. Should the bank opt to terminate the program, LEDC will be entitled to and claim ownership of all funds in the loss reserve account held by the bank. however, any enrolled loans which are still outstanding at the time of termination will be covered by the loss reserve account.