| (a) Purpose. The purpose of the Texas Rural Community
Loan is to provide financial assistance to political subdivisions
and economic development corporations and allow the loans to be secured
with sales tax, utility fees, ad valorem taxes, or other revenues
or collateral to fund eligible projects.
(b) Eligible Entities. Rural municipalities, counties,
special purpose districts, economic development corporations, and
political subdivisions supporting agricultural businesses or furthering
rural economic development may apply for loan funds under this section.
(c) Use of Funds. Loans may be used for eligible real
estate purchases, building construction, site improvements, equipment,
water and wastewater systems, municipal infrastructure projects, and
any other eligible use that can be identified to further in the economic
development of the rural area and/or support agricultural businesses.
(d) Loan Terms. The loan terms will be determined by
the board and as defined by this subchapter.
(e) Collateral. The collateral and security requirements
will be determined by the board and as defined by this subchapter.
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