Texas Administrative Code › Title 4 - AGRICULTURE › Part 1 - TEXAS DEPARTMENT OF AGRICULTURE › Chapter 28 - TEXAS AGRICULTURAL FINANCE AUTHORITY › Subchapter D - YOUNG FARMER INTEREST RATE REDUCTION PROGRAM RULES › Section 28.46 - Acceptance and Rejection Procedures

Current through Reg. 49, No. 28;
				  July 12, 2024
(a) The
				  comptroller shall review completed applications from the Authority and notify
				  the Authority of their decision to accept or deny the application.
(b) The Authority will notify the lender if
				  the application has been accepted or denied.
(c) The comptroller will inform the lender of
				  the amount of the required collateralization of the linked deposit. The
				  Authority will forward written notice that the lender has requested funding to
				  the comptroller. The comptroller will wire the linked deposit to the lender in
				  immediately available funds the same day, provided written notice of funding of
				  the loan is received by 9:00 a.m. The comptroller will then provide the
				  Authority confirmation of the linked deposit.
(d) The comptroller shall determine the terms
				  and conditions of the linked deposit once the maturity date is established (it
				  cannot be set beyond the end of the biennium in which the linked deposit is
				  placed), the applicable interest rate for the linked deposit can be determined
				  by referring to the United States treasury bill or note section of the current
				  issue of the Wall Street Journal corresponding with the day the loan is priced.
				  The maturity date is matched to the closest treasury bill maturity. If longer
				  than a year, it is matched to the treasury note with the maturity closest to
				  the linked deposit maturity. In the case of a multiple maturity listing, the
				  maturity with the lowest yield to arrive at the linked deposit rate should be
				  used.
(e) An applicant may reapply
				  for participation in the program after rejection of an application if the
				  application complies with the standards set forth in these sections and under
				  the Act.
(f) A lender shall
				  terminate the linked deposit if the loan is prepaid. Quarterly principal
				  reductions of $1,000 or more will result in a corresponding reduction of the
				  linked deposit in a like amount (rounded to the nearest thousand) at the end of
				  each quarter ending in November, February, May, and August. Upon completion of
				  the quarterly review by the comptroller and the Authority, the linked deposit
				  will be adjusted to the outstanding principal balance rounded to the nearest
				  thousand dollars.
(g) If a lender
				  ceases to be a state depository, the comptroller shall withdraw the linked
				  deposits. If the lender, which has a linked deposit, is purchased by another
				  lending institution, the linked deposit will be reissued to the purchasing
				  institution. Should the linked deposit loan not be obtained by the purchasing
				  institution, then the linked deposit will be returned to the comptroller. The
				  Authority and the comptroller will allow the borrower 90 days to place the loan
				  with another lender.
(h) A late
				  payment on a loan by an eligible borrower does not affect the validity of the
				  linked deposit through the period of the fiscal biennium. Should an eligible
				  borrower default on a loan and the lender proceed with collection by
				  foreclosure, the linked deposit must be returned to the comptroller.