The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

1. (1) Act--The Texas Agricultural Finance Act, Texas Agriculture Code, Chapter 58, as amended.
2. (2) Agricultural business--A business that is or proposes to be engaged in innovative, diversified, or value-added production, processing, marketing, or exporting of an agricultural product or a business that is or proposes to be engaged in an agricultural-related rural economic development project.
3. (3) Agricultural product--An agricultural, horticultural, viticultural, or vegetable product, bees, honey, fish or other seafood, planting seed, livestock, a livestock product, a forestry product, poultry, or a poultry product, either in its natural or processed state, or any other agricultural product approved by the Authority, that has been produced, processed, or otherwise had value added to it in this state.
4. (4) Applicant--Any person, corporation, partnership, cooperative, joint venture, or sole proprietorship filing an application with the Authority for financial assistance. A lender may submit an application for any of the above-mentioned parties.
5. (5) Application--An application, including supporting documentation and schedules as required by the Authority, for participation in the programs.
6. (6) Authority--The Texas Agricultural Finance Authority.
7. (7) Board--The board of directors of the Authority.
8. (8) Business day--A day on which the department is open for business. The term shall not include Saturday, Sunday, or a traditional holiday officially observed by the state. The department's normal business hours are 8:00 a.m. to 5:00 p.m. each business day.
9. (9) Department--The Texas Department of Agriculture.
10. (10) Direct Loan Amount--With respect to loans made to an eligible applicant, a sum measured in terms of United States dollars that the Authority provides to the eligible applicant as identified in the application and the loan documents.
11. (11) Equity--The applicant's contribution to a project in the form of cash, land, or other depreciable property.
12. (12) Fund--The Texas agricultural fund.
13. (13) Interest rate--The interest rate charged on a guarantied loan or a direct loan shall be no less than the prime lending rate as published in the money rates section of the Wall Street Journal (Southwest Edition) plus 2.0%, floating, unless approved by the Board. The interest rate established on a participation purchased by the Authority from an approved lender will be the rate approved by the lender on the loan.
14. (14) Lender--A lending institution, including a bank, banking association, savings bank, trust company, mortgage company, investment banker, credit union, underwriter, life insurance company, or any affiliate of those entities, and also including any other financial institution or governmental agency that customarily provides financing of agricultural loans or mortgages, or any affiliate of such an institution or agency, or any institution that the board determines is an experienced and sophisticated lender.
15. (15) Loan guaranty amount--With respect to loans made by a lender and guaranteed by the Authority, a sum measured in terms of United States dollars that the Authority pays to the lender to acquire an undivided interest in any loan or, in the case of default by the borrower, the Authority agrees to pay to the lender, not to exceed the percentage as stated in the guaranty agreement.
16. (16) Participation purchase amount--A sum measured in terms of United States dollars that the Authority agrees to provide to an eligible lender for the purchase of an undivided interest of a loan provided to an eligible borrower by a lender.
17. (17) Programs--Any financial assistance program approved by the Authority board and defined by these rules including the Direct Loan Program, the Participation Purchase Program and the Loan Guaranty Program.
18. (18) Project--An enterprise which would further the expansion or development of production, processing, marketing or exporting of Texas agricultural products or other agricultural-related rural economic development project.
19. (19) Qualified application--A completed application, including all documents and information required by the Authority and submitted by the lender or applicant, for a project.
20. (20) Staff--The staff of the Authority or staff of the department performing work for the Authority.
21. (21) State--The State of Texas.

Source Note:The provisions of this §28.3 adopted to be effective April 23, 1991, 16 TexReg 2051; amended to be effective March 10, 1992, 17 TexReg 1533; amended to be effective January 6, 1993, 17 TexReg 9027; amended to be effective January 17, 1994, 19 TexReg 66; amended to be effective October 4, 1995, 20 TexReg 7596; amended to be effective August 24, 1999, 24 TexReg 6472.