- (a) In reviewing an application by a political subdivision for a loan, the board shall consider the ability of the political subdivision to repay the loan and whether the loan will further water conservation in this state.
(b) To approve a loan to a political subdivision, the board must determine that:
- (1) the public interest is served by providing the loan;
- (2) the political subdivision has the ability to repay the loan; and
- (3) the loan will further water conservation in the state.
- (c) The board by rule shall establish the rate of interest it charges for a loan to a political subdivision.
Added by Acts 2003, 78th Leg., ch. 200, Sec. 19(s), eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 352, Sec. 19, eff. Sept. 1, 2003.