Section 375.203 - 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 that shall not exceed $250,000;(B) identifies the interest rate to be paid by the borrower that shall not exceed the interest rate paid by the eligible lending institution to the Board plus four percent;(C) includes a repayment schedule that identifies the dates on which payments are due from the loan recipient to the lending institution;(D) limits the use of the loan funds to the project which is certified pursuant to this subchapter; and(E) contains all 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: (A) from the eligible lending institution of the interest rate applicable to the proposed loan;(B) for proposed project as identified under this subchapter; and(4) such other information or documentation as determined by the executive administrator to be reasonable and necessary to fulfill the objectives of this division.(b) Before the executive administrator executes a linked deposit agreement, the executive administrator shall review the information submitted in this section to determine if:(1) the lending institution is an eligible lending institution as defined in § 375.302 of this subchapter;(2) the documents submitted by the lending institution comply with the requirements of this division; and(3) execution of the linked deposit agreement fulfills the purposes and intent of this subchapter, the Clean Water Act, and the public interest.31 Tex. Admin. Code § 375.203
The provisions of this §375.203 adopted to be effective September 8, 2010, 35 TexReg 8126; Amended by Texas Register, Volume 41, Number 27, July 1, 2016, TexReg 4860, eff. 7/4/2016