The following words and terms, when used in this subchapter,
shall have the following meanings, unless the context clearly indicates
otherwise.
(1) Eligible lending institution--A financial institution
that makes commercial loans, is either designated as an official state
depository by the Texas comptroller of public accounts, herein referred
to as a state depository, or an institution of the Farm Credit System
headquartered in this state, agrees to participate in a linked deposit
program established under §15.611 of the Water Code, and is willing
to agree to provide collateral equal to the amount of linked deposits
placed with it.
(2) Individual water quality management plan--An approved
land management plan that considers site-specific characteristics
(such as soil types, slope, climate, vegetation, and land usage) to
improve or conserve water resources.
(3) Linked deposit--A deposit governed by a linked
deposit agreement between the Board and an eligible lending institution
that requires that:
(A) the eligible lending institution pay interest to
the Board on the deposit at a rate equal to the asking yield for a
U.S. Treasury note with a twelve-month maturity as of the date five
days preceding the submission of all the documents required of the
eligible lending institution requesting a linked deposit agreement;
(B) the state not withdraw any part of the deposit
except as according to the terms of the linked deposit agreement and
the terms of this division; and
(C) the eligible lending institution agrees to lend
the value of the deposit to a person at a rate not to exceed the interest
paid by the eligible lending institution to the Board plus four percent.
(4) Linked deposit agreement--A written agreement between
the Board, acting through the executive administrator, and an eligible
lending institution providing for the deposit by the Board of an amount
of funds from the CWSRF program account with the eligible lending
institution executed pursuant to the authority and according to the
conditions of this subchapter.
(5) Pledged security--Means the securities authorized
by these rules and the linked deposit agreement negotiated to secure
the Board's deposit of funds with the eligible lending institution.
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