1. (a) Eligible costs. Financing received under this program may be used to provide working capital for operating a farm or ranch, including the lease of facilities and the purchase of machinery and equipment, or for any agriculture-related business purpose, including the purchase of real estate for the agricultural-related business, as defined in the plan.
2. (b) Ineligible costs. Use of financing received under this Program for any costs other than those identified in the plan shall be considered ineligible costs. The purchase of real estate exclusively for agriculture production purposes is an ineligible cost for this program. A loan guarantee is voidable by the board or the commissioner if the borrower uses loan proceeds for any costs not identified in the plan.

Source Note:The provisions of this §30.5 adopted to be effective November 15, 1993, 18 TexReg 7539; amended to be effective September 16, 1997, 22 TexReg 9243; amended to be effective September 28, 1999, 24 TexReg 8150.