Texas Administrative Code › Title 40 - SOCIAL SERVICES AND ASSISTANCE › Part 5 - TEXAS VETERANS LAND BOARD › Chapter 175 - GENERAL RULES OF THE VETERANS LAND BOARD › Subchapter A - GENERAL RULES AND CONTRACTING FINANCING › Section 175.20 - Delinquencies and Forfeiture Procedures

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions. The following words and
				  terms when used in this section shall have the following meanings, unless the
				  context clearly indicates otherwise:
(1)
				  Account--The loan account a borrower holds with the Veterans Land Board. The
				  account includes the obligations between the borrower and the board as
				  evidenced by contracts and documents in the borrower's loan file as well as the
				  accounting records of the board. This includes the amount of the unpaid
				  principal balance of the loan, any administrative costs made a part of the
				  loan, unpaid interest, and any delinquent amount.
(2) Borrower--The person presently obligated
				  to make the loan installment payments set forth in the contract, including the
				  purchaser at a forfeited land sale or the last board-approved assignee of the
				  original veteran purchaser.
(3)
				  Contract--The contract of sale and purchase between the board and a
				  borrower.
(4) Current--The account
				  is in good standing with no installments past due.
(5) Delinquent amount--The total amount
				  needed to bring an account current. This includes all past due installments,
				  administrative costs made part of such past due installments, and all accrued
				  delinquent interest or penalty on all such past due installments. Delinquent
				  interest or penalty shall accrue on any delinquent amount as set by the board
				  from time to time by resolution.
(6) Forfeiture--The action by which the board
				  declares a borrower to be in breach of his or her contract by virtue of failing
				  to perform a material term of the contract, including, but not limited to,
				  timely payment of the loan installments.
(7) Installment--The amount of the periodic
				  loan payment specified by the contract.
(8) Partial Payment Agreement--A borrower's
				  written agreement to clear the delinquent amount on or before a designated date
				  by making payments in addition to the installment amount on scheduled dates as
				  described in the agreement.
(9)
				  Delinquent interest--The interest or penalty which accrues on a loan
				  installment which has become delinquent. The delinquent interest rate or
				  penalty shall be set by the board from time to time by resolution
(10) Reinstatement penalty--The amount
				  charged to a borrower (whose contract has been forfeited by the board) in order
				  to reinstate the contract. The reinstatement penalty is in addition to the
				  amount necessary to bring the account current.
(A) Beginning on the date of the first and
				  any second forfeiture of the contract, each unpaid delinquent installment (of
				  principal and interest combined) will accrue a reinstatement penalty in an
				  amount equal to 1.5 percent per month (or 18 percent per year), until the
				  contract is reinstated.
(B)
				  Beginning on the date of the third instance and any subsequent forfeiture of
				  the contract, the outstanding principal balance of the contract will accrue a
				  reinstatement penalty in an amount equal to 1.5 percent per month (or 18
				  percent per year), less the accrued delinquent interest, until the contract is
				  reinstated.
(11) Sale
				  order date--The date on which the board meets to order a tract advertised for
				  sale, or for lease for mineral development.