Texas Administrative Code
Title 31 - NATURAL RESOURCES AND CONSERVATION
Part 10 - TEXAS WATER DEVELOPMENT BOARD
Chapter 363 - FINANCIAL ASSISTANCE PROGRAMS
Subchapter L - WATER INFRASTRUCTURE FUND
Section 363.1205 - Interest Rates for Loans

(A) to the extent that the source of funding is provided from bond proceeds, the lending rate scale(s) will be determined as provided under § 363.33(b) of this title (relating to Interest Rates for Loans and Purchase of Board's Interest in State Participation Projects);

(B) Although the program is designed to provide borrowers with a reduction from the market rate based on a level debt service schedule, in no event shall the loan interest rate as determined under this section be less than zero;

(C) The loan interest rate will be determined based on a debt service schedule that provides interest only will be paid in the first year of the debt service schedule and in which the annual debt service payments are level, as determined by the executive administrator. The executive administrator will identify the appropriate scale for the borrower and identify the market rate for the maturity due in each year. The executive administrator will reduce that market rate by a subsidy to be determined by the board and thereby identify a proposed loan interest rate for each maturity. The proposed loan interest rate will be applied to the proposed principal repayment schedule.

(D) For loans made under § 363.1203(a)(2) of this title (relating to Use of Fund), which receive deferred principal and interest payments, the executive administrator will identify the appropriate scale for the borrower and identify the market rate for the maturity due in each year. The executive administrator will reduce that market rate by a subsidy to be determined by the board and thereby identify a proposed loan interest rate for each maturity. The proposed loan interest rate will be applied to the proposed principal repayment schedule.