- (a) The authority may make, guarantee, insure, coinsure, or reinsure a loan up to the limits in this section and Section 58.021 for a single eligible business which already has an active loan if the action is approved by a two-thirds vote of the members present.
- (b) Except for programs administered by the authority under Chapters 44 and 59, the authority shall give preference to loans, loan guarantees, loan insurance, coinsurance, reinsurance, or any other financing mechanism to value-added agricultural businesses. The authority may decline to provide financial assistance to businesses whose primary purpose is to establish or expand conventional agricultural production.
- (c) The authority may not guarantee more than 90 percent of a loan to an eligible agricultural business made by a private lender.
Added by Acts 1995, 74th Leg., ch. 419, Sec. 5.18, eff. Sept. 1, 1995.