| (a) Applicant. An applicant is eligible for a loan
from the Authority if it meets the following criteria:
(1) The applicant is a legal entity under the laws
of the United States of America and the State of Texas;
(2) The applicant has a principal place of business
in the state;
(3) The applicant is an eligible entity pursuant to §§28.73
or 28.74 of this subchapter (relating to Texas Rural Community Loan
and Agriculture and Community Economic Development Loan);
(4) The applicant submits an eligible application to
the Authority;
(5) If applicable, the lender submits required documentation
to the Authority;
(6) The applicant is not considered an ineligible person
as defined by §28.87 of this subchapter (relating to Ineligible
Persons);
(7) The applicant has complied with state law and Authority
rules; and
(8) The applicant meets the criteria and guidelines
in the Authority's credit policy.
(b) Project. The project is an eligible project if
it provides significant benefits to agricultural development and/or
rural economic development and is not considered an ineligible commitment
as defined by §28.86 of this subchapter (relating to Prohibited
Commitments).
(c) Project costs. Any proceeds provided by the Authority
may be used only to finance expenditures incurred in connection with
the development of the project as identified in the budget filed with
the application and approved by the board.
(d) Ineligible project costs. Any expenditure that
is not identified in the approved budget filed with the application,
or is otherwise prevented by regulation or statute, is not eligible
for financing hereunder, unless the applicant provides evidence accepted
by the board that such expenditure is necessary for completion of
the project, complies with regulation and statute, and will not increase
the commitment approved.
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