- (a) The maturity of a loan shall be determined by the board.
- (b) The fixed interest rate for a loan shall be equal to the asking yield for a U.S. Treasury note with a twelve-month maturity on the date that rates are set.
(c) The executive administrator set the applicable interest rate for a loan five business days prior to:
- (1) the effective date of the loan agreement between the board and the political subdivision; or
- (2) the adoption by the political subdivision of the ordinance or resolution authorizing the bonds to be sold to the board.
- (d) If the loan closing does not occur within 45 days after the executive administrator sets the applicable interest rate, the executive administrator shall set a new interest rate as set forth in subsection (b) of this section or, at the sole discretion of the executive administrator, may re-authorize the previously identified interest rate.
Source Note:The provisions of this §367.11 adopted to be effective March 9, 2004, 29 TexReg 2362.