1. (a) Application forms. An applicant or lender seeking a loan guarantee from the Authority must use the application forms provided by the Authority and must include all information requested.
2. (b) Submission of application. All applicants are required to obtain a preliminary commitment from a lender before applications will be accepted by the Authority. Staff will be available prior to submission of the qualified application to assist applicants and lenders in determining project eligibility.
3. (c) Staff review. Staff will review the application for completeness and will notify the lender of any additional information required. When all required information has been received, staff will conduct a credit review, evaluate the project, and examine its benefits for Texas agriculture, economic growth and job creation in the state. The staff may request and consider comments of the county agent or the agricultural science teacher who reviewed the Plan. A district-based agricultural economist may be requested to provide assistance in reviewing the plan.
4. (d) Board review. The staff shall submit a credit memorandum to the board which shall include a recommendation for approval or denial for each qualified application received by the program. The board will approve or deny the qualified application by a majority vote of a quorum of the board, based upon the information presented in accordance with the Act and this chapter, the credit memorandum, and the factors set forth in §253.004 of the Act, as implemented by this chapter. The board may impose additional terms and conditions as part of its approval.
5. (e) Notification of approval. Upon conditional approval of the qualified application by the board, staff will notify the lender and the applicant in writing identifying the terms and conditions of the loan guarantee. The board may set certain time limits regarding the acceptance of loan commitments by the applicant and lender; however, in no event shall the time period exceed 30 days from date of notification unless approved by the board. The lender will prepare the written agreements and documents necessary to close the loan in accordance with the terms and conditions set forth in the notice of conditional approval. The Authority will send the lender and the applicant final notice of guarantee approval after review of the closing documents. The lender will disburse the loan according to the terms and conditions of the note and/or loan agreement.
6. (f) Denial of application. If the qualified application is denied by the board, the Authority will notify the eligible applicant and the lender in writing, identifying the reasons for denial. Applicants who have been denied may re-apply to the loan guarantee program.
7. (g) Providing false information. An applicant who knowingly provides false information in an application shall be disqualified from obtaining a loan guarantee under the program and shall be liable to the Authority and the department for any expense incurred by the Authority or the department as a result of the falsity. If the falsity is discovered after approval of a loan guarantee, the falsity may constitute grounds for revocation of the guarantee, and the Authority shall be entitled to exercise all its rights under the loan documents.
8. (h) Reporting to the board. Staff shall report to the board at each board meeting the status of loans and current financial commitments of the Authority under the program.

Source Note:The provisions of this §30.6 adopted to be effective November 15, 1993, 18 TexReg 7539; amended to be effective March 10, 1994, 19 TexReg 1375; amended to be effective July 1, 1996, 21 TexReg 5686; amended to be effective September 16, 1997, 22 TexReg 9243.