Texas Administrative Code
Title 31 - NATURAL RESOURCES AND CONSERVATION
Part 10 - TEXAS WATER DEVELOPMENT BOARD
Chapter 367 - AGRICULTURAL WATER CONSERVATION PROGRAM
Section 367.16 - Conditions Prior to Execution
Universal Citation: 31 TX Admin Code ยง 367.16
Current through Reg. 49, No. 12; March 22, 2024
(a) Before the executive administrator may execute a linked deposit agreement, a lending institution shall submit to the executive administrator:
(1) the application of a person determined by
the eligible lending institution to be eligible and creditworthy to receive a
loan according the criteria of the institution;
(2) a draft loan agreement with such person
that:
(A) identifies the principal amount of
the loan which shall not exceed $250,000;
(B) identifies the interest rate to be paid
by the borrower which shall not exceed the interest rate paid by the eligible
lending institution to the board plus four percent;
(C) includes a repayment schedule which
identifies the dates on which payments are due from the loan recipient to the
lending institution;
(D) limits the
use of the funds to a conservation project certified pursuant to subsection
(a)(3) of this section; and
(E)
contains such other terms and conditions determined by the eligible lending
institution in its sole discretion to be reasonable for the purposes of a
private loan agreement;
(3) a certification from:
(A) the eligible lending institution of the
interest rate applicable to the proposed loan;
(B) a director of a soil and water
conservation district for the district in which the project is located
certifying that:
(i) the loan recipient has a
soil and water conservation plan approved by the district; and
(ii) the project furthers or implements such
plan; and
(4)
such other information or documentation as determined by the executive
administrator to be reasonable and necessary to fulfill the objectives of this
chapter.
(b) Before the executive administrator executes a linked deposit agreement, the executive administrator shall review the information submitted in this section and determine that:
(1) the lending institution is
an eligible lending institution as defined in §
367.2 of
this chapter;
(2) the documents
submitted by the lending institution comply with the requirements of this
chapter; and
(3) execution of the
linked deposit agreement fulfills the purposes and intent of this chapter and
the public interest.
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