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--Texas Agriculture Code, Chapter 58, Subchapter
F, Texas Agriculture Code §§58.071 - 58.075.
(2) Eligible borrower--A person that is 18 years of
age or older but younger than 46 years of age at the time of submitting
a loan application and who is approved for participation in the program.
(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 3%; or
(ii) .5%;
(B) the state does 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 lender agrees to lend the value of the deposit
to an eligible borrower at a rate not to exceed the linked deposit
rate plus 4%.
(4) Program--The Young Farmer Interest Rate Reduction
Program.
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