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 accor- dance 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.