Section 28.32 - Criteria for Approval of Loan Guarantee(a) The board or the commissioner shall consider the following factors in deciding whether to approve an application for a loan guarantee: (1) the anticipated benefits from granting a loan guarantee to the eligible applicant, including both potential job creation and commercial benefits to the agricultural industry;(2) the eligible applicant's qualifications;(3) the feasibility of the eligible applicant's plans;(4) other repayment sources available to the eligible applicant; and(5) any other factor or circumstance within statutory authority and reasonably related to the goals and objectives of the Act.(b) Eligibility of the lender. The lender originating a loan must have a continuing ability to evaluate, perform, and service the loan; to make the necessary reports as identified in the rules of the program; and to collect the loan, if requested by the Authority, upon default. The commercial lender must agree to exercise due diligence in the servicing, maintenance, review, and evaluation of performance without regard to the existence of the Authority's guarantee or any other limitation of risk. The board or the commissioner reserves the right to decline a loan guarantee, or revoke a loan guarantee to a lender which does not present sufficient evidence that they have the capacity or interest to appropriately make and service the loan. The board may revoke or limit a loan guarantee if the lender fails to substantially comply with financial industry standards pertaining to reasonably prudent administration, origination, servicing, or underwriting of loans, or if the lender fails to comply with all obligations required under agreements with the Authority.(c) The Authority has adopted a Credit Policy and Procedures document which contains additional guidelines used by the Authority in the loan guarantee review and approval process. The Credit Policy and Procedure document may be obtained from the Texas Agricultural Finance Authority, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas, 78711.4 Tex. Admin. Code § 28.32
The provisions of this §28.32 adopted to be effective September 1, 2009, 34 TexReg 5902; Amended by Texas Register, Volume 46, Number 28, July 9, 2021, TexReg 4135, eff. 7/12/2021