Section 33.405 - Release of Funds from Loan Reserve Fund Escrow Account(a) For release of an amount equal to not more than one-twelfth of the loan reserve fund escrow account, the provider shall submit a request in writing to the escrow agent.(b) For the release of an amount in excess of one-twelfth of the loan reserve fund escrow account, the procedures in paragraphs (1)-(3) of this subsection shall apply. (1) The provider shall submit a completed CCRC Form #2 (Application for Approval of the Commissioner for Release of Loan Reserve Amounts in Excess of that Allowed by Health and Safety Code, § 246.078(a)) with the department for approval. The provider may not withdraw funds under this paragraph more than once during a calendar year.(2) The department shall notify the provider by letter whether the application is approved within 30 days after the completed application is received by the department. If the department disapproves the application, the provider may request a hearing seeking Commissioner review of the matter by filing a motion for reconsideration addressed to the Commissioner and filed with the department's docket clerk. After a hearing, the Commissioner shall dispose of the matter by entering an order approving or disapproving the application. The department will send a copy of the order to the provider.(3) If the department approves the application, the provider may present the letter of approval or the Commissioner's order approving the release to the escrow agent. The escrow agent shall then release the funds from the loan reserve fund escrow account in the amount requested.(c) The escrow agent shall give the department notice of the release not later than the 11th day before the date of release. The notice shall be submitted to the department on CCRC Form #10 (Notice of Request to Release Funds from the Reserve Fund Escrow Account).28 Tex. Admin. Code § 33.405
The provisions of this §33.405 adopted to be effective March 14, 1996, 21 TexReg 1770.