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TITLE 4AGRICULTURE
PART 1TEXAS DEPARTMENT OF AGRICULTURE
CHAPTER 28TEXAS AGRICULTURAL FINANCE AUTHORITY
SUBCHAPTER BINTEREST RATE REDUCTION PROGRAM
RULE §28.13Definitions

In addition to the definitions set out in the Texas Agriculture Code, Chapter 58, as amended, and in Subchapter A of this chapter (relating to Financial Assistance Rules), the following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.

  (1) Act--The Texas Agriculture Code, Chapter 44, §44.007, as amended with the passage of Senate Bill 1016 by the 81st Texas Legislature, 2009.

  (2) Eligible borrower--A person who proposes to use the proceeds of a loan under the interest rate reduction program in a manner that will help accomplish the state's goal of fostering the:

    (A) creation and expansion of enterprises based on agriculture in this state; or

    (B) development or expansion of businesses in rural areas of the state.

  (3) Linked deposit--A time deposit governed by a written deposit agreement between the state and the lender that provides that:

    (A) the lender pay interest on the deposit at a rate that is not less than the greater of:

      (i) the current market rate minus 2%; or

      (ii) 1.5%;

    (B) the state not withdraw any part of the deposit before the expiration of a period set by a written advance notice of the intention to withdraw; and

    (C) the eligible lending institution agree to lend the value of the deposit to an eligible borrower at a maximum rate that is the linked deposit rate plus a maximum of 4.0%.

  (4) Program--The Interest Rate Reduction Program authorized by the Act, §44.007.


Source Note: The provisions of this §28.13 adopted to be effective September 1, 2009, 34 TexReg 5902; amended to be effective November 21, 2013, 38 TexReg 8190

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