In addition to the definitions set out in the Texas Agriculture
Code, Chapter 58, as amended, and in subchapter A of this chapter
(relating to Financial Assistance Rules), the following words and
terms, when used in this subchapter, shall have the following meanings,
unless the context clearly indicates otherwise.
(1) Act--The Texas Agriculture Code, Chapter 44, §44.007.
(2) Eligible borrower--A person who proposes to use
the proceeds of a loan under the interest rate reduction program in
a manner that will help accomplish the state's goal of fostering the:
(A) creation and expansion of enterprises based on
agriculture in this state; or
(B) development or expansion of businesses in rural
areas of the state.
(3) Linked deposit--A time deposit governed by a written
deposit agreement between the state and the lender that provides that:
(A) the lender pay interest on the deposit at a rate
that is not less than the greater of:
(i) the current market rate minus 2%; or
(ii) 1.5%;
(B) the state not withdraw any part of the deposit
before the expiration of a period set by a written advance notice
of the intention to withdraw; and
(C) the eligible lending institution agree to lend
the value of the deposit to an eligible borrower at a maximum rate
that is the linked deposit rate plus a maximum of 4.0%.
(4) Program--The Interest Rate Reduction Program authorized
by the Act, §44.007.
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| Source Note: The provisions of this §28.13 adopted to be effective September 1, 2009, 34 TexReg 5902; amended to be effective November 21, 2013, 38 TexReg 8190; amended to be effective July 12, 2021, 46 TexReg 4134 |
