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TITLE 31NATURAL RESOURCES AND CONSERVATION
PART 10TEXAS WATER DEVELOPMENT BOARD
CHAPTER 367AGRICULTURAL WATER CONSERVATION PROGRAM
RULE §367.18Lending Institution Obligations in Linked Deposit Agreements

(a) Upon execution of a linked deposit agreement and receipt of money from the board, the lending institution shall:

  (1) provide collateral as required in §367.21 of this title (relating to Collateral for Linked Deposits);

  (2) lend the value of the deposit being provided by the board substantially according to the terms and conditions of the draft loan agreement submitted by the lending institution to the executive administrator;

  (3) pay to the board interest on the deposit at a rate equal to the asking yield for a U.S. Treasury note with a twelve-month maturity as of the date five days preceding the submission of all the documents required of the eligible lending institution to the executive administrator requesting a linked deposit agreement;

  (4) submit compliance reports to the executive administrator annually providing information on the performance of the terms of the loan by the person receiving the loan from the lending institution and such other information or documents as specified in the linked deposit agreement;

  (5) return the amount of funds provided as a linked deposit as specified in the linked deposit agreement; and

  (6) perform such other terms and conditions as specified in the linked deposit agreement, this chapter, the rules of the board, and applicable federal and state law.

(b) A delay in payment or a default on a loan by the recipient of the loan from the lending institution does not affect the validity of the deposit agreement or the repayment of the deposit in accordance with the terms of the deposit agreement.


Source Note: The provisions of this §367.18 adopted to be effective July 6, 2004, 29 TexReg 6348; amended to be effective May 9, 2005, 30 TexReg 2680

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