In addition to the definitions set forth in Texas Agriculture Code, §58.002, as amended, and §28.2 of this chapter (relating to Definitions), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

1. (1) Act--Texas Agriculture Code, Chapter 58, Subchapter F, Texas Agriculture Code §§58.071 - 58.075.
2. (2) Lender--A lending institution, as defined in Texas Agriculture Code, §58.002(8), which also includes institution of the Farm Credit System.

3. (3) Linked deposit--A time deposit governed by a written deposit agreement between the State and the lender that provides that:

   1. (A) the lender pay interest on the deposit at a rate that is not less than the greater of:

      1. (i) the current market rate minus 3%; or
      2. (ii) .5%;
   2. (B) the State does not withdraw any part of the deposit before the expiration of a period set by a written advance notice of the intention to withdraw; and
   3. (C) the lender agrees to lend the value of the deposit to an eligible borrower at a rate not to exceed the linked deposit rate plus 1%.
4. (4) Program--The Farmer Interest Rate Reduction Program.

Source Note:The provisions of this §28.42 adopted to be effective September 1, 2009, 34 TexReg 5902; amended to be effective July 12, 2021, 46 TexReg 4134; amended to be effective March 18, 2026, 51 TexReg 1617.