1. (a) Need for a commitment. The Authority shall consider whether the desired project financing appears to be available to the applicant on reasonable terms from other lenders. The Authority may direct the applicant to other sources for co-participation in the commitment.

2. (b) Reasonable risks. There must be reasonable assurance, in the judgment of the Authority, that the commitment provided can and will be repaid according to its terms. In making this judgment the Authority may consider the following:

   1. (1) evidence of the manner, means, and security of payment by the applicant;
   2. (2) projected cash flow earnings of the applicant;
   3. (3) firm commitments from other independent and responsible financial sources for all other funds in excess of the commitment provided;
   4. (4) collateral and other sources of guaranties or insurance securing the commitment provided;
   5. (5) credit history and financial condition of the applicant; and
   6. (6) historical financial information of applicant.
3. (c) The Authority has adopted a Credit Policy and Procedures document which contains additional criteria and guidelines used by the Authority in the review and application approval process. The Credit Policy and Procedure document is adopted by reference herein. Copies may be obtained from the Texas Agricultural Finance Authority, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711.

Source Note:The provisions of this §28.51 adopted to be effective September 6, 2000, 25 TexReg 8623; amended to be effective September 28, 2005, 30 TexReg 6048; transferred effective October 1, 2007, as published in the Texas Register September 28, 2007, 32 TexReg 6793.