In addition to the definitions set forth in Texas Agriculture
Code, §58.002 and §28.2 of this chapter (relating to Definitions),
the following words and terms, when used in this subchapter, shall
have the following meanings, unless the context clearly indicates
otherwise.
(1) Applicant--Any entity recognized by state law to
conduct business in the state of Texas including for-profit and non-profit
entities, political subdivision, or economic development corporation
submitting an application with the Authority for a financial assistance
under this subchapter.
(2) Commitment--Any form of financial assistance provided
to an applicant as approved by the board, including, but not limited
to, a guaranty, a direct loan, a participation commitment, an anticipation
note, or a conduit issuance for a political subdivision or any other
eligible entity as defined by this subchapter.
(3) Economic Development Corporation (EDC)--An entity
created pursuant to the Development Corporation Act of 1979, which
gives cities the ability to raise funds and finance economic and community
development efforts through the creation of economic development corporations
(EDCs). Chapters 501, 504 and 505 of the Local Government Code define
the scope of EDCs. A Type A EDC is governed by Chapter 504; and a
Type B EDC is governed by Chapter 505.
(4) Eligible application--A completed application,
including all application fees, documents, and information required
by the Authority and submitted by the lender or applicant for a project,
that is consistent with the purpose of agricultural and rural economic
development and meets the terms and benchmarks defined by the Authority's
Credit Policy and Procedures. The Department, the Authority, or the
Authority's representative will review the application and issue an
approval or denial.
(5) For-profit entity--An organization that is registered
in the state of Texas and has a principal place of business in Texas,
which operates with the intention of making a profit or whose efforts
are made to obtain a profit.
(6) Interest rate--The interest rate approved by the
Authority for an approved commitment.
(7) Lender--A lending institution, including a bank,
trust company, banking association, savings bank, mortgage company,
investment banker, credit union, Community Development Financial Institution,
or any affiliate of those entities, and any other financial institution
that customarily provides financing for agricultural businesses or
rural economic development loans, or any affiliate of such institution.
(8) Non-profit entity--A local, community or regional
organization that was formed and conducts its affairs to benefit the
public or to assist other individuals, groups or causes, and can demonstrate
its non-profit status by providing one of the following:
(A) A copy of the Internal Revenue Service ruling,
indicating tax-exempt status;
(B) A copy of the Texas secretary of state charter
indicating non-profit status; or
(C) Documentation of its status as an educational institution
recognized by the State of Texas.
(9) Political subdivision--A county, municipality,
special district, school district, junior college district, housing
authority, or other political subdivision of this state as defined
by Chapter 172 of the Local Government Code.
(10) Program--Rural Economic Development Finance Program.
(11) Project--An enterprise or project, which would
further agricultural business or the economic development of a rural
area.
(12) Recipient--an entity approved by the Authority
or its designee to receive a commitment outlined in this subchapter.
(13) Rural area--A rural area means an area which is
predominately rural in character; an unincorporated area or a city
with a population under 50,000; or a county with a population under
200,000.
(14) Special purpose district--A political subdivision
of Texas with geographic boundaries that define the subdivision's
territorial jurisdiction, as described in Chapter 403, Texas Government
Code.
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