1. (a) Introduction. Pursuant to the authority granted by the Texas Government Code, Chapter 481, as amended and the Administrative Procedure Act, Texas Government Code, Chapter 2001, Subchapter B, Rulemaking, as amended, the Texas Department of Commerce (Commerce) prescribes the following rules regarding practice and procedure applicable to local industrial development corporations established pursuant to the Development Corporation Act of 1979, Texas Civil Statutes, Article 5190.6, §4A and §4B, as amended. The rules relate to loans made to industrial development corporations under Commerce's Texas Leverage Fund Program.

2. (b) Authority.

   1. (1) Pursuant to the provisions of the Constitution of the State of Texas, Article III, §52-a, adopted by the voters of the State of Texas on November 3, 1987, and the Texas Government Code, Chapter 481, as amended, Commerce, an agency of the State of Texas, is authorized to provide for the issuance of revenue bonds or notes for the purpose of providing money to fund economic development programs.
   2. (2) The Commerce policy board adopted a Master Resolution as of September 9, 1992, establishing a $300,000,000 Taxable Commercial Paper Note Program Series A for the purpose of providing money to establish certain Commerce loan programs. By First Supplemental Resolution dated as of September 9, 1992, the policy board authorized the issuance of $25,000,000 in aggregate principal amount at any one time outstanding of its Taxable Commercial Paper Notes Series A to fund economic development programs.
3. (c) Delegation of Authority to Executive Director. Pursuant to the Texas Government Code, §481.075(a) and the Master Resolution, the policy board has delegated to the executive director, or his/her designee, the authority to approve each loan made under the Texas Leverage Fund Program. Further, the policy board delegated to the executive director, or his/her designee, all necessary authority in regard to collection, settlement and enforcement of each and every loan approved and funded under this program.

Source Note:The provisions of this §181.1 adopted to be effective March 27, 1997, 22 TexReg 2871.