§ 280ff. Funding
(a) The State Treasurer, in consultation with the Secretary of Administration, shall negotiate an agreement with the Authority incorporating the provisions of this section and consistent with the requirements of this subchapter.
(b) Repayment from or appropriation to the Authority in years 2021 and until the Program terminates is based on the Authority's contributions to loan loss reserves for the Program in accordance with generally accepted accounting principles. Any difference between the actual loan losses incurred by the Authority in fiscal year 2020 through Program termination shall be adjusted in the following year's appropriation.
(1) The Program shall terminate when all borrowers enrolled in the Program have repaid in full or loans have been charged-off against the reserves of the Authority.
(2) Upon termination of the Program, any remaining funds held by the Authority and not used for the Program shall be repaid to the State.
(3) The accumulated total of the appropriation shall not exceed $8,500,000.00 over the life of the Program.
(4) The Authority shall absorb its historical loan loss reserve rate before any State funds are expended.
(5) Additionally, the Authority shall absorb up to $3,000,000.00 in Program losses shared with the State on a pro rata basis. (Added 2019, No. 79, § 15, eff. June 20, 2019.)
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