In addition to the definitions set out in the Texas Agriculture Code, Chapter 253, 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 253, as amended, the Young Farmer Loan Guarantee Program.
2. (2) Agricultural science teacher--An individual employed by a Texas school district for the purpose of teaching agricultural science and technology.
3. (3) Applicant--A young farmer or rancher who is applying for assistance under the Act and this chapter.
4. (4) 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.
5. (5) Authority--The Texas Agricultural Finance Authority.
6. (6) Board--The board of directors of the Texas Agricultural Finance Authority.
7. (7) Borrower--An eligible applicant approved for a loan guarantee by the board.
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 from 8:00 a.m. to 5:00 p.m. each business day.
9. (9) Department--The Texas Department of Agriculture.
10. (10) District-based agricultural economist--A district agricultural economist employed by the Texas Agricultural Extension Service.

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;
    2. (B) has a minimum of four years of practical farm or ranch experience, with not more than two years of participation in a 4-H or vocational agriculture program counting as practical farm or ranch experience; and
    3. (C) 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 by debt, mortgage, pledge, or any other security interest.

13. (13) First farm or ranch operation--An independent operation:

    1. (A) in which the applicant as owner/operator provides substantially all of the management and labor for the operation; and
    2. (B) in which the applicant as owner/operator provides or directly arranges for the financing of the operation.
14. (14) 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.
15. (15) Lender--A state or nationally chartered commercial lending institution, savings and loan association, credit union, or Farm Credit System institution in the state.
16. (16) Loan--A loan approved by the board in accordance with the requirements and criteria set forth in the Act and in this chapter.
17. (17) Loan guarantee agreement--An agreement between the Authority and the lender which defines the responsibilities of the parties.
18. (18) 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 $100,000 or 90% of the total loan.
19. (19) Plan--A cash flow, production, or management plan.
20. (20) Program--The Young Farmer Loan Guarantee Program.
21. (21) Project--A first farm or ranch operation which would further the production of Texas agricultural products.
22. (22) Qualified application--A completed application, including all documentation and information required by the Authority, submitted by the applicant and lender for a project.
23. (23) Staff--The staff of the department assigned to the Authority.
24. (24) 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.