(a) The Arkansas Development Finance Authority shall establish a loss reserve account for each financial institution with which the authority makes a contract.
(b) The loss reserve account for a financial institution shall consist of moneys paid in fees by borrowers and the financial institution and moneys transferred to the account from the Capital Access Fund.
(c) The authority may establish and maintain loss reserve accounts with any financial institution under such policies as the authority may adopt.
(d) All moneys in a loss reserve account are the property of the authority.
Structure Arkansas Code
Title 15 - Natural Resources and Economic Development
Subtitle 1 - Development Of Economic And Natural Resources Generally
Chapter 5 - Arkansas Development Finance Authority
Subchapter 11 - Arkansas Capital Access Program for Small Business Act of 1993
§ 15-5-1102. Legislative findings and declaration of public necessity
§ 15-5-1104. Contracts with financial institutions — Contents of contract
§ 15-5-1105. Capital Access Fund — Use — Investment earnings — Administrative expenses
§ 15-5-1106. Loss reserve accounts — Limitation on amount
§ 15-5-1107. Enrollment of qualified loan — Procedure — Fee — Transfers to loss reserve account
§ 15-5-1108. Claims for reimbursement of losses — Amounts subject to reimbursement