4 Tex. Admin. Code § 30.9
General Terms and Conditions of Authority's Financial Commitment
Effective Sep 28, 199924 TexReg 8150Source Note: The provisions of this §30.9 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.Texas Secretary of State
- (a) Maximum amount of loan guarantee. The Authority shall not provide a loan guarantee to borrower, including its affiliates, that at any one time exceeds the lesser of $250,000 or 90% of the total loan. A loan guarantee is voidable by the board if the borrower uses loan proceeds for any use other than those allowed under the Act and this chapter. The total loan guarantees authorized at any one time are limited to two times the amount available in the young farmer loan guarantee account.
- (b) Security. Financial commitments approved under this program must be secured by a first lien on collateral of a type and value which, when considered with other criteria, in the judgment of the board or the commissioner affords reasonable assurance of repayment of the loan.
- (c) Closing of the loan. The commissioner of agriculture or her designee may attend the verification and signing of such closing documents at the time, date, and location determined by the commercial lender.
- (d) Closing costs. All closing costs associated with the closing of an approved loan, including the Authority's review of the closing documents by independent legal counsel, shall be the liability of the borrower.
- (e) Co-participation. An applicant may seek co-participation in financial assistance from other private and governmental sources. In any event, the Authority's maximum guarantee in the credit may not exceed the lesser of 90% of the loan or $250,000 with the commercial lender remaining at risk for at least 10% of the loan.
- (f) Maturity. The maturity of the loan guarantee approved by the Authority must not exceed the lesser of the useful life of the assets being financed or 10 years.
- (g) Interest rate. The interest rate on the guaranteed loan (not including guarantee fees) shall be the rate charged by the commercial lender and approved by the Authority.
Source Note:The provisions of this §30.9 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.