1. (a) The Department shall grant all loans which qualify, to the extent that funds are available, provided that:

   1. (1) Such amount represents an excess of $300,000 in a medical injury tort judgment or settlement, the $300,000 being covered by insurance or reserve account, as specified in Section 100(a)(4)(B).
   2. (2) The total amount of such loans does not exceed $1,000,000 in the aggregate.
2. (b) Physicians in the local community who are employees of the hospital district shall be covered for medical injury tort liability by the district.

Note: Authority cited: Sections 32351-32355, Health and Safety Code, Division 23. Reference: Sections 32351, 32353, 32355, Health and Safety Code, Division 23.