Section 367.16 - Conditions Prior to Execution(a) Before the executive administrator may execute a linked deposit agreement, a lending institution shall submit to the executive administrator: (1) the application of a person determined by the eligible lending institution to be eligible and creditworthy to receive a loan according the criteria of the institution;(2) a draft loan agreement with such person that:(A) identifies the principal amount of the loan which shall not exceed $250,000;(B) identifies the interest rate to be paid by the borrower which shall not exceed the interest rate paid by the eligible lending institution to the board plus four percent;(C) includes a repayment schedule which identifies the dates on which payments are due from the loan recipient to the lending institution;(D) limits the use of the funds to a conservation project certified pursuant to subsection (a)(3) of this section; and(E) contains such other terms and conditions determined by the eligible lending institution in its sole discretion to be reasonable for the purposes of a private loan agreement;(3) a certification from: (A) the eligible lending institution of the interest rate applicable to the proposed loan;(B) a director of a soil and water conservation district for the district in which the project is located certifying that: (i) the loan recipient has a soil and water conservation plan approved by the district; and(ii) the project furthers or implements such plan; and(4) such other information or documentation as determined by the executive administrator to be reasonable and necessary to fulfill the objectives of this chapter.(b) Before the executive administrator executes a linked deposit agreement, the executive administrator shall review the information submitted in this section and determine that:(1) the lending institution is an eligible lending institution as defined in § 367.2 of this chapter;(2) the documents submitted by the lending institution comply with the requirements of this chapter; and(3) execution of the linked deposit agreement fulfills the purposes and intent of this chapter and the public interest.31 Tex. Admin. Code § 367.16
The provisions of this §367.16 adopted to be effective July 6, 2004, 29 TexReg 6348