4 Tex. Admin. Code § 28.13 - Definitions

In addition to the definitions set out in the Texas Agriculture Code, Chapter 58, as amended, and in Subchapter A of this chapter (relating to Financial Assistance Rules), the following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.

(1) Act--The Texas Agriculture Code, Chapter 44, §44.007.

(2) Eligible borrower--A person who proposes to use the proceeds of a loan under the interest rate reduction program in a manner that will help accomplish the state's goal of fostering the:

(A) creation and expansion of enterprises based on agriculture in this state; or

(B) development or expansion of businesses in rural areas of the state.

(3) Linked deposit--A time deposit governed by a written deposit agreement between the state and the lender that provides that:

(A) the lender pay interest on the deposit at a rate that is not less than the greater of:

(i) the current market rate minus 2%; or

(ii) 1.5%;

(B) the state not withdraw any part of the deposit before the expiration of a period set by a written advance notice of the intention to withdraw; and

(C) the eligible lending institution agree to lend the value of the deposit to an eligible borrower at a maximum rate that is the linked deposit rate plus a maximum of 4.0%.

(4) Program--The Interest Rate Reduction Program authorized by the Act, §44.007.

Notes

4 Tex. Admin. Code § 28.13

The provisions of this §28.13 adopted to be effective September 1, 2009, 34 TexReg 5902; amended to be effective November 21, 2013, 38 TexReg 8190; Amended by Texas Register, Volume 46, Number 28, July 9, 2021, TexReg 4135, eff. 7/12/2021