| (a) The purpose of this subchapter is to implement the authority
granted to the board by Natural Resources Code, Chapter 161, Subchapter K.
The board shall only make loans under this subchapter that are secured by
mortgages, deeds of trust, or other liens.
(b) Unless otherwise provided in this subchapter, the rules
of the Veterans Land Board set forth in TAC, Title 40, Part 5, Chapter 175,
Subchapter A, relating to General Rules and Contract Financing, shall apply
to all loan transactions made by the board that are secured by a mortgage,
deed of trust, or other lien on the land to be purchased. When applying any
provision of Subchapter A to a mortgage loan transaction, those provisions
shall be construed as necessary and appropriate for a mortgage loan transaction
rather than a contract of sale transaction. The board may, by resolution,
clarify the construction of any provision of Subchapter A in its application
to a mortgage loan transaction.
(c) Any requirement of this subchapter that is not otherwise
required by the constitution or statutes of this state may be waived on a
case-by-case basis by the board. Any waiver request must be in writing and
must describe the circumstances surrounding the request, including all of
the reasons why the waiver is requested.
(d) Definitions.
(1) "Borrower" means a person presently obligated to make payments
to the board:
(A) For a loan made, or purchased, by the board as provided
by this subchapter;
(B) For a purchase of land from the board under a contract
of sale as provided by Subchapter A, relating to General Rules and Contract
Financing, of this chapter; or
(C) For a loan or contract of sale that the person assumed
from the original borrower with the written consent of the board.
(2) "Contract of sale" means those transactions described in
Subchapter A, relating to General Rules and Contract Financing, in which the
board takes fee title to property as security and sells to the borrower on
a contract of sale and purchase. Title is conveyed to the borrower when all
terms and conditions of the contract of sale have been satisfied.
(3) "Lending institution" means a bank, savings bank, savings
and loan association, credit union, trust company, mortgage bank, mortgage
company, life insurance company, or other financial institution that customarily
provides service or aids in the financing of mortgages on single-family residential
housing, or a holding company for one of those institutions.
(4) "Loan" or "mortgage loan" means a veterans' land loan made
or acquired by the board under Natural Resources Code, Chapter 161, Subchapter
K, relating to Land Loans, secured by a mortgage, deed of trust, or other
lien on the land purchased with the proceeds of the loan.
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