Sec. 05.13.04.23. Reports by Lender; Withdrawal of Excess Funds

A. Reports by Lender.

(1) On or before July 15 of each year, the lender shall file a year-end report with the Department indicating the number and aggregate outstanding balances of all enrolled loans for the period comprising the 12 months ending on June 30.

(2) On or before October 15, January 15, and April 15 of each year, the lender shall file a quarterly report with the Department indicating the number and aggregate outstanding balances of all enrolled loans for the period comprising the 3 preceding calendar months.

(3) A quarterly report is not required for a quarter that ends with a balance in the reserve account of $0, but a year-end report shall be filed before July 15 for the period comprising the 12 months ending on June 30.

(4) In the computation of the aggregate outstanding balance of all enrolled loans, the balance of a loan may not be greater than the covered amount of the loan as enrolled.

B. If a year-end report filed under §A of this regulation indicates that, for the immediately preceding 12-month period ending on June 30, the balance in the reserve account continuously exceeded 100 percent of the aggregate outstanding balance of all enrolled loans, including unfunded portions of enrolled loans that are lines of credit, the Department may make a withdrawal from the reserve account. The amount of the withdrawal may not be greater than the minimum amount of any excess as continuously maintained over the immediately preceding 12-month period ending on June 30. Withdrawals of excess sums by the Department under this section may be used for any purpose.

C. If a year-end report is not filed within 30 days of the original due date of the report, the Department may make a withdrawal from the reserve account on the basis of the Department's determination from an inspection of the lender's files that, for the immediately preceding 12-month period ending on June 30, the balance in the reserve account continuously exceeded 100 percent of the aggregate outstanding balance of all enrolled loans, including unfunded portions of enrolled loans that are lines of credit. If the lender fails or refuses to make all or any part of its files available to the Department for inspection for this purpose, the Department may make a withdrawal from the reserve account on the basis of the Department's determination from a review of the Department's own records that, for the immediately preceding 12-month period ending on June 30, the balance in the reserve account continuously exceeded 100 percent of the aggregate outstanding balance of all enrolled loans, including unfunded portions of enrolled loans that are lines of credit. The amount of the withdrawal may not be greater than the minimum amount of any excess as continuously maintained over the immediately preceding 12-month period ending on June 30. Withdrawals of excess sums by the Department under this section may be used for any purpose.

D. The right of the Department to make a withdrawal from the reserve account under §B or C of this regulation is subject to the following provisions:

(1) If a year-end report is filed by July 15 or not more than 30 days after that, the Department has the right of withdrawal for a period of 90 days from the date of the filing of the report with the Department; and

(2) If a year-end report is not filed within 30 days after the original due date, the Department has the right of withdrawal for a period of 90 days from the date the Department determines from an inspection of the lender's files (or, if the lender fails or refuses to make all or any part of its files available to the Department for inspection for this purpose, then from the date the Department determines from a review of the Department's own records) that the Department is entitled to make a withdrawal from the reserve account under this regulation.