| (a) The board shall determine the amount and form of
financial assistance and the amount and form of repayment, if applicable.
The board shall establish repayment based on the political subdivision's
ability to repay the financial assistance and shall consider:
(1) rates, fees, and charges that the average customer
to be served by the project will be able to pay;
(2) sources of funding available to the political subdivision
from federal and private funds and from other state funds;
(3) any local funds available from the political subdivision
if the economically distressed area to be served by the board's financial
assistance is within the boundary of the political subdivision;
(4) the just, fair, and reasonable charges for water
and wastewater service as provided in the Texas Water Code;
(5) the ability of the board to maximize the portion
of financial assistance for which repayment is required based on the
political subdivision's ability to repay the assistance, as provided
by board rule; and
(6) the limit on the total amount of financial assistance
that does not require repayment pursuant to Texas Water Code §17.933.
(b) The board shall determine the method of evidence
of debt.
(c) If the board determines non-performance of the
terms of the grant by the political subdivision, the board may require
reimbursement of all or part of the funds provided by grant assistance
or impose sanctions such as prohibition of further board financial
assistance.
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