1. (a) Letter of request. Each lender is required to qualify itself for participation in the program by submitting a letter of request, accompanied by its most recent audited financial statements, if available, and the designation of the individual(s) within the lender who will be responsible for working with the Authority.
2. (b) Investigation. As a condition to participation, a lender must agree to make such investigation as it considers necessary to determine the applicant's viability, the economic benefits to be derived, the prospects for repayment, and other facts that it considers necessary to determine whether participation by the applicant is within the purposes of the program.
3. (c) Lender interest. As a condition to participation, the lender must retain an interest of at least 10% in the principal amount of the loan and agree to administer the loan in accordance with this chapter and in such manner as if there were no limitations of risk.
4. (d) Commitment letter. A lender interested in making a loan guaranteed under the program must submit a qualified application along with a commitment letter to the Authority outlining the terms and conditions of the proposed loan. The letter will show the name of the business, purpose of the loan, amount and use of the funds, proposed closing date, and collateral for the loan guaranty amount that the lender is seeking from the Authority.

Source Note:The provisions of this §28.13 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 17, 1994, 19 TexReg 66; amended to be effective October 4, 1995, 20 TexReg 7596.