43 Tex. Admin. Code § 6.41 - Financial Assistance Agreements

(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) Disbursement of funds. If § 6.32(d) of this chapter (relating to Commission Action) applies to construction of the project, funds will not be disbursed for that construction unless it is authorized to begin under that subsection.

(d) Initial repayment date. Except as provided by this subsection, repayment of any financial assistance from the bank will begin within 18 months after the date of the initial funding of the financial assistance The commission may defer the initial repayment of financial assistance to a specified date that is not 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.

(e) 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.

(f) Prepayments. Principal and interest may be prepaid without penalty on any date or dates as provided in the financial assistance agreement.

(g) 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.

Notes

43 Tex. Admin. Code § 6.41

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; Amended by Texas Register, Volume 49, Number 41, October 11, 2024, TexReg 8404, eff. 10/16/2024