(a) Form of agreement. An agreement evidencing a loan
or other financial assistance may be in the form of a contract or
similar document, or may be in the form of a bond, note, or other
obligation issued by the applicant.
(b) Negotiation of terms. The executive director will
negotiate the terms of agreements deemed necessary to comply with
any requirements of preliminary approval, to protect the public's
safety, and to prudently provide for the protection of public funds
while furthering the purposes of this chapter. These agreements shall
include, but not be limited to, terms provided for in this subchapter,
as applicable to a particular project.
(c) Initial repayment date. Unless the commission defers
the beginning of repayment, repayment of any financial assistance
from the bank will begin on the earliest reasonable date consistent
with applicable federal and state law, rules, and regulations. If
approved by the commission, the initial repayment of financial assistance
may be deferred to the date specified by the commission, which may
not be later than the fifth anniversary of the date of the initial
funding of the financial assistance. The term for repaying any financial
assistance will not exceed 30 years after the date of the first scheduled
payment.
(d) Payment dates. Interest and principal shall be
paid on the dates specified in the financial assistance agreement.
If a date for payment is not a business day the payment shall be made
on the next following business day.
(e) Prepayments. Principal and interest may be prepaid
without penalty on any date or dates as provided in the financial
assistance agreement.
(f) Assurances. The department will provide in a financial
assistance agreement assurances that are reasonably and customarily
required by the applicant and that are necessary for obtaining financing
for, developing, or operating a particular project, if, in the department's
reasonable judgment, the assurances are consistent with the agreement.
|
Source Note: The provisions of this §6.41 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433 |