Section 367.10 - Loans to Political Subdivisions(a) In reviewing an application by a political subdivision for a loan, the board shall consider the ability of the political subdivision to repay the loan and whether the loan will further water conservation in this state.(b) To approve a loan to a political subdivision, the board must find that: (1) the public interest is served by providing the loan;(2) the political subdivision has the ability to repay the loan; and(3) the loan will further water conservation in the state.(c) The board may make a loan available to a political subdivision in any manner the board considers economically feasible, including purchase of bonds or securities of the political subdivision or execution of a loan agreement with the political subdivision. The board may not purchase bonds or securities that have not been approved by the attorney general and registered by the comptroller.31 Tex. Admin. Code § 367.10
The provisions of this §367.10 adopted to be effective March 9, 2004, 29 TexReg 2362