(a) The Director of the Arkansas Natural Resources Commission shall have the discretionary authority to deobligate funds approved by the Arkansas Natural Resources Commission for the loan to an applicant without returning to the commission for its approval in the following cases:

1. (1) The loan was approved by the commission in an amount in excess of that needed for completion of a project;
2. (2) An applicant requests that funds be deobligated; or
3. (3) In the judgment of the director, an applicant has failed to comply with the requirements of this part.

(b)

1. (1) Deobligation, except if made under subdivision (a)(1) of this section, shall be made only after consultation with and concurrence of the commission chair.
2. (2) Any deobligations pursuant to this section shall be reported to the commission as a whole at the next regularly scheduled commission meeting.