- (a) After reviewing the appraisal, and any other relevant information, the board shall issue a commitment showing the amount it will invest in the land selected. The veteran and seller shall be notified of the commitment amount.
(b) If the commitment amount is less than the purchase price, one of the following should be done:
- (1) amend the contract price to conform to the commitment amount;
- (2) amend the contract price, with the veteran paying to the board the difference between the amended price and the commitment amount, if necessary;
- (3) pay to the board the difference between the contract price and the commitment amount;
- (4) amend the contract to increase the acreage to make up for the difference; or
- (5) cancel the loan application.
- (c) If improvements on the land are considered by the board in determining the commitment amount, their value will be amortized over their lifetime as determined by the appraiser. Similarly, when land is situated in an underground irrigation water area, the installments will be accelerated for the purpose of protecting the board's investment against the risk of any diminishment of the water reserve.
Source Note:The provisions of this §175.6 adopted to be effective March 11, 1986, 11 TexReg 1005.