The procedure and method for setting fixed interest rates includes
the following.
(1) The executive administrator will set fixed interest
rates under this section for loans on a date that is five business
days prior to the political subdivision's adoption of the ordinance
or resolution authorizing its bonds and not more than 45 days before
the anticipated closing of the loan from the board. After 45 days
from the establishment of the interest rate of a loan, rates will
be reconsidered, and may be extended only with the approval of the
executive administrator.
(2) For loans from the Rural Water Assistance Fund,
the executive administrator will set the interest rates in accordance
with the following:
(A) to the extent that the source of funding is provided
from bond proceeds issued through the Water Development Fund specifically
designated for this fund, 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); or
(B) for loans where the interest rates calculated in
subparagraph (A) of this paragraph results in a true interest cost
that is less than the minimum true interest cost of the lending rate
scale established for those funds, interest will be calculated at
a rate increased to match the minimum true interest costs so the board
may recover all costs attributed to the bonds sold by the board; or
(C) for loans funded by the board with proceeds of
bonds, the interest for which is intended to be tax exempt for purposes
of federal tax law, the executive administrator will limit the interest
set pursuant to this subsection at no higher than the rate permitted
under federal tax law to maintain the tax exemption for the interest
on the board's bonds.
(3) The board, at its discretion, may require applicants
to receive a portion of the project funding from other board loan
programs.
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| Source Note: The provisions of this §365.5 adopted to be effective January 1, 2002, 26 TexReg 11031; amended to be effective May 6, 2003, 28 TexReg 3735; transferred effective February 15, 2020, as published in the January 24, 2020 issue of the Texas Register, 45 TexReg 593 |
