The fund may be used for the following purposes:

1. (1) to make loans on the condition that:

   1. (A) such loans are made at or below market interest rates, including interest free loans at terms not to exceed 20 years;
   2. (B) annual principal and interest payments will commence not later than one year after completion on any project and all loans will be fully amortized not later than 20 years after project completion; and
   3. (C) the recipient of a loan will establish a dedicated source of revenue for repayment of loans;
2. (2) to buy or refinance the bonds of eligible applicants within the state at or below market rates, when such bonds were incurred after March 7, 1985;
3. (3) for the reasonable costs of administering the fund and conducting activities under the Act, Title VI;
4. (4) as a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the state if the proceeds of the sale of such bonds will be deposited in the fund; and
5. (5) to earn interest on fund accounts.

Source Note:The provisions of this §375.15 adopted to be effective February 25, 1988, 13 TexReg 791; amended to be effective June 30, 1988, 13 TexReg 3077; amended to be effective February 10, 1995, 20 TexReg 492.