Texas Administrative Code › Title 4 - AGRICULTURE › Part 1 - TEXAS DEPARTMENT OF AGRICULTURE › Chapter 28 - TEXAS AGRICULTURAL FINANCE AUTHORITY › Subchapter C - AGRICULTURAL LOAN GUARANTEE PROGRAM › Section 28.26 - Consideration of Applications

Current through Reg. 49, No. 28; July
				  12, 2024
(a) Application
				  forms. A lender seeking a loan guarantee from the Authority must use the
				  application forms provided by the Authority and must include all information
				  requested.
(b) Submission of
				  application. All applicants are required to obtain approval from a lender
				  before applications will be accepted by the Authority. Staff will be available
				  to assist applicants and lenders in determining eligibility for a loan
				  guarantee under this subchapter.
(c) Staff review. Staff will review the
				  application for completeness and will notify the commercial lender of any
				  additional information required. When the received application has been
				  determined to be a qualified application, staff will review the lender's basis
				  for approval, evaluate the project and examine whether it meets all program
				  requirements.
(d) Board or
				  commissioner review. The staff shall submit a credit memorandum to the board
				  which shall include a recommendation for approval or denial for each qualified
				  application received by the program. The board shall approve or deny each
				  qualified application. The board may impose additional terms and conditions as
				  part of its approval. The board may delegate to the commissioner or deputy
				  commissioner the authority to take any and all action described in this
				  subsection.
(e) Notification of
				  approval. Upon approval of the qualified application, staff will notify the
				  lender in writing identifying the terms and conditions of the loan guarantee.
				  The lender will prepare the written agreements and documents necessary to close
				  the loan in accordance with the terms and conditions set forth in the notice of
				  approval. The staff will send the lender final notice of guarantee approval
				  after review and approval of the closing documents. Certain time limits may be
				  set regarding the acceptance of loan commitments by the applicant and the
				  lender; however, in no event shall the time period exceed 45 days from date of
				  notification unless previously approved. The lender will disburse the loan
				  according to the terms and conditions of the note and/or loan
				  agreement.
(f) Denial of
				  application. If the application is denied, staff will notify the lender in
				  writing, identifying the reasons for denial. Applicants who have been denied
				  may re-apply to the loan guarantee program.
(g) Providing false information. An applicant
				  who knowingly provides false information in an application shall be
				  disqualified from obtaining a loan guarantee under the program and shall be
				  liable to the Authority and the department for any expense incurred by the
				  Authority or the department as a result of the falsity. If the falsity is
				  discovered after approval of a loan guarantee, the falsity may constitute
				  grounds for revocation of the guarantee, and the Authority shall be entitled to
				  exercise all its rights under the loan documents.
(h) Reporting to the board. Staff shall
				  report to the board at each board meeting the status of loans of the Authority
				  and any applications approved by the commissioner under the program since the
				  last meeting of the board.