In addition to the definitions set out in the Texas Agriculture Code, Chapter 58, as amended, the following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:

1. (1) Act--Texas Agriculture Code, Chapter 58, Subchapter E, as enacted with the passage of House Bill 3050 by the 76th Texas Legislature, 1999, the Young Farmer Loan Guarantee Program.
2. (2) Applicant--A young farmer or rancher who is applying for assistance under the Act and this chapter.
3. (3) Application--An application, including supporting documentation and schedules as required by the Authority, that must be completed by an applicant and submitted by the applicant's lender to staff in order to seek participation in the program and to determine an applicant's eligibility.
4. (4) Authority--The Texas Agricultural Finance Authority.
5. (5) Board--The board of directors of the Texas Agricultural Finance Authority.
6. (6) Borrower--An eligible applicant approved for a loan guarantee by the board.
7. (7) 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 from 8:00 a.m. to 5:00 p.m. each business day.
8. (8) Commercial lender--A commercial lending institution chartered by the state or federal government, including a savings bank, a credit union, or a Farm Credit System institution.
9. (9) Commissioner--The Commissioner of the Texas Department of Agriculture.
10. (10) Department--The Texas Department of Agriculture.

11. (11) Eligible applicant--A person applying for a loan guarantee who:

    1. (A) is at least 18 years of age but younger than 40 years of age; and
    2. (B) complies with the application procedures prescribed by these rules.
12. (12) Equity--The applicant's contribution to a project in the form of cash, land, or other depreciable property which is unencumbered.
13. (13) Interest rate--The interest rate on a guaranteed loan as determined by the participating lender and approved by the board on a project-by-project basis.
14. (14) Loan--A loan made by a commercial lender and approved for a guarantee by the board or the commissioner in accordance with the requirements and criteria set forth in the Act and in this chapter.
15. (15) Loan guarantee agreement--An agreement between the Authority and the commercial lender which defines the responsibilities of the parties.
16. (16) Loan guarantee amount--With respect to a loan made by a lender, a sum measured in terms of United States dollars that the Authority agrees to pay in the case of default by the borrower, not to exceed the lesser of $250,000 or 90% of the total loan.
17. (17) Plan--The documentation submitted to the lender in support of the application.
18. (18) Program--The Young Farmer Loan Guarantee Program.
19. (19) Project--An enterprise that establishes or enhances a farming or ranching operation or an agriculture-related business, which furthers Texas agriculture.
20. (20) Qualified application--A completed application, including all documentation and information required by the Authority, submitted by the applicant and the commercial lender for a project.
21. (21) Staff--The staff of the department assigned to the Authority.
22. (22) State--The State of Texas.

Source Note:The provisions of this §30.3 adopted to be effective November 15, 1993, 18 TexReg 7539; amended to be effective June 16, 1995, 20 TexReg 4048; amended to be effective October 21, 1996, 21 TexReg 9823; amended to be effective September 16, 1997, 22 TexReg 9243; amended to be effective September 28, 1999, 24 TexReg 8150.