AGRICULTURE CODE
CHAPTER 58. AGRICULTURAL FINANCE AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
§ 58.001. SHORT TITLE. This chapter may be cited as the
Texas Agricultural Finance Act.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
§ 58.002. DEFINITIONS. In this chapter:
(1) "Agricultural business" means:
(A) a business that is or proposes to be engaged
in producing, processing, marketing, or exporting an agricultural
product;
(B) an eligible applicant as defined in
Subchapter E;
(C) the entity designated to carry out boll
weevil eradication in accordance with Section 74.1011;
(D) any agriculture-related business in rural
areas of Texas including a business that provides recreational
activities, including hiking, fishing, hunting, or any other
activity associated with the enjoyment of nature or the outdoors on
agricultural land;
(E) a state agency or an institution of higher
education that is engaged in producing an agricultural product; or
(F) any other business in a rural area of this
state.
(2) "Agricultural product" means an agricultural,
horticultural, viticultural, or vegetable product, bees, honey,
fish or other seafood, planting seed, livestock, a livestock
product, a forestry product, poultry, or a poultry product, either
in its natural or processed state, that has been produced,
processed, or otherwise had value added to it in this state.
(3) "Authority" means the Texas Agricultural Finance
Authority.
(4) "Board" means the board of directors of the
authority.
(5) "Bond" includes any type of obligation issued
under this Act, including without limitation, any bond, note,
draft, bill, warrant, debenture, interim certificate, revenue of
bond anticipation note, grant, or any other evidence of
indebtedness.
(6) "Commissioner" means the commissioner of
agriculture.
(7) "Eligible agricultural business" means an
agricultural business having its principal place of business in
this state.
(8) "Lender" means a lending institution including a
bank, trust company, banking association, savings and loan
association, mortgage company, investment banker, credit union,
life insurance company, underwriter, or any affiliate of any of
those entities, and also includes any other financial institution
or governmental agency that customarily provides financing of
agricultural loans or mortgages, or any affiliate of such an
institution or agency.
(9) "Rural area" means an area which is predominately
rural in character, being one which the board defines and declares
to be a rural area.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
Amended by Acts 1999, 76th Leg., ch. 1459, § 8, eff. June 19,
1999; Acts 2001, 77th Leg., ch. 26, § 4, eff. May 2, 2001.
§ 58.003. VENUE. A suit filed by or on behalf of the
authority under this chapter may be brought in Travis County.
Added by Acts 2001, 77th Leg., ch. 26, § 5, eff. May 2, 2001.
SUBCHAPTER B. ADMINISTRATION
§ 58.011. CREATION OF AUTHORITY; PUBLIC
PURPOSE. (a) The Texas Agricultural Finance Authority is created
within the Department of Agriculture as a public authority.
(b) The authority is created to provide financial
assistance for the expansion, development, and diversification of
production, processing, marketing, and export of Texas
agricultural products. The exercise by the authority of the powers
and duties conferred by this chapter is an essential public purpose
of the state in promoting the general welfare of the state and all
of its citizens.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
§ 58.012. BOARD OF DIRECTORS. (a) The authority is
governed by a board of directors composed of the commissioner of
agriculture, the director of the Institute for International
Agribusiness Studies at Prairie View A&M University, and seven
members appointed by the governor with the advice and consent of the
senate. Members of the board must be appointed in the numbers
specified and from the following categories:
(1) one person who is an elected or appointed official
of a municipality or county;
(2) four persons who are knowledgeable about
agricultural lending practices;
(3) one person who is a representative of agricultural
businesses; and
(4) one person who is a representative of agriculture
related entities, including rural chambers of commerce,
foundations, trade associations, institutions of higher education,
or other entities involved in agricultural matters.
(b) The appointed members of the board serve staggered terms
of two years, with the terms of three members expiring on January 1
of each even-numbered year and the terms of four members expiring on
January 1 of each odd-numbered year.
(c) Any vacancy occurring in an appointed position on the
board shall be filled by the governor for the unexpired term.
(d) Repealed by Acts 2003, 78th Leg., ch. 285, § 31(2).
(e) A board member is not entitled to compensation for
serving as a director but is entitled to reimbursement for actual
and necessary expenses incurred in performing the official duties
of office.
(f) Appointments to the board shall be made without regard
to the race, color, disability, sex, religion, age, or national
origin of the appointees.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
Amended by Acts 1991, 72nd Leg., ch. 456, § 1, eff. Sept. 1,
1991; Acts 1993, 73rd Leg., ch. 538, § 1, eff. Jan. 1, 1994;
Acts 1995, 74th Leg., ch. 419, § 1.12, 5.11, eff. Sept. 1, 1995;
Acts 2003, 78th Leg., ch. 285, § 31(2), eff. Sept. 1, 2003.
§ 58.013. OFFICERS. (a) The governor shall designate
a member of the board as the chairman of the board to serve in that
capacity at the pleasure of the governor. The board shall elect a
vice-chairman biennially from its members and shall elect a
secretary, a treasurer, and other officers it considers necessary.
(b) The chairman of the board shall preside at meetings of
the board and perform other duties prescribed by the board.
(c) The vice-chairman shall perform the duties of the
chairman when the chairman is not present or is incapable of
performing his duties of chairman.
(d) The secretary is the custodian of the minutes, books,
records, and seal of the board and shall perform other duties
prescribed by the board.
(e) The treasurer shall perform the duties prescribed by the
board. The offices of secretary and treasurer may be held by the
same individual.
(f) The board may appoint one or more individuals who are
not board members to perform any duty of the secretary or treasurer.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
Amended by Acts 1995, 74th Leg., ch. 419, § 1.13, eff. Sept. 1,
1995.
§ 58.014. MEETINGS; ADMINISTRATIVE
PROCEDURE. (a) The board shall hold regular and special meetings
at times specified by the chairman.
(b) A majority of the voting membership of the board
constitutes a quorum. The board shall act by adopting resolutions.
Except as otherwise provided by Sections 58.021(c) and 58.0211(a),
the affirmative vote of a majority of the directors present is
necessary to adopt a resolution.
(c) The board shall develop and implement policies that
provide the public with a reasonable opportunity to appear before
the board and to speak on any issue under the jurisdiction of the
board.
(d) The board is subject to Chapter 551, Government Code,
and Chapter 2001, Government Code.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
Amended by Acts 1995, 74th Leg., ch. 419, § 1.14, 1.15, eff.
Sept. 1, 1995; Acts 2001, 77th Leg., ch. 26, § 6, eff. May 2,
2001.
§ 58.015. ADMINISTRATION. (a) The commissioner with
the assistance of the board shall administer the Texas Agricultural
Finance Authority. The board shall reimburse the Department of
Agriculture for expenses incurred as required by the business of
the authority with the approval of the board.
(b) The commissioner may, with the approval of the board,
appoint, employ, contract with, and provide for the compensation of
employees, consultants, and agents including engineers, attorneys,
management consultants, financial advisors, indexing agents,
placement agents, and other experts as the business of the
authority may require.
(c) The commissioner may, with the approval of the board,
employ an administrator of the authority. The administrator may
attend all meetings and participate, but not vote, in all
proceedings of the authority.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
Amended by Acts 1995, 74th Leg., ch. 419, § 5.12, eff. Sept. 1,
1995.
§ 58.016. FISCAL ACCOUNTING OF
ADMINISTRATION. (a) All funds acquired under this chapter may be
used for administration of this chapter, except that funds
representing the proceeds of bonds issued by the authority or
pledged to the payment of the bonds of the authority shall be held
and used as provided in the resolution or indenture authorizing the
bonds.
(b) On or before August 1 of each year, the administrator
shall file with the board the proposed annual budgets for the young
farmer loan guarantee program under Subchapter E, the farm and
ranch finance program under Chapter 59, and the programs
administered by the board under this chapter for the succeeding
fiscal year. If there is no administrator, the commissioner shall
assume the duties of the administrator in connection with
preparation of the budget. The budget must set forth the general
categories of expected expenditures out of revenues and income of
the funds administered by the authority and the amount on account of
each. On or before September 1 of each year, the board shall
consider the proposed annual budget and may approve it or amend it.
Copies of the annual budget certified by the chairman of the board
shall be promptly filed with the governor and the legislature. The
annual budget is not effective until it is filed. If for any reason
the authority does not adopt an annual budget before September 2, no
expenditures may be made from the funds until the board approves the
annual budget. The authority may adopt an amended annual budget for
the current fiscal year, but the amended annual budget may not
supersede a prior budget until it is filed with the governor and the
legislature.
(c) The authority shall have an audit of its books and
accounts for each fiscal year by a certified public accountant. The
cost of the audit is an expense of the authority. A copy of the
audit shall be filed with the governor and the legislature on or
before January 1 of each year.
(d) On or before January 1 of each year, the authority shall
prepare a report of its activities for the preceding fiscal year.
The report must set forth a complete operating and financial
statement. The authority shall file copies of the report with the
governor and the legislature as soon as practicable.
(e) The board members, administrator, and staff of the
authority may not be personally liable for bonds issued or
contracts executed by the authority and shall be exculpated and
fully indemnified in the documents relating to any bonds except in
the case of fraudulent or wilful misconduct on the part of the
individual seeking exculpation or indemnification.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
Amended by Acts 1989, 71st Leg., ch. 584, § 67, eff. Sept. 1,
1989; Acts 1995, 74th Leg., ch. 419, § 5.13, eff. Sept. 1, 1995;
Acts 1999, 76th Leg., ch. 1459, § 9, eff. June 19, 1999.
§ 58.017. PERFORMANCE MEASURES. The Board, in
conjunction with the Legislative Budget Board and the Office of the
Governor, shall develop a minimum of two performance measures that
provide information on the benefits of the authority's loan
programs. The performance measures shall be included in the report
required under Section 58.016(d) of this code or as a component of
the measures incorporated into the General Appropriations Act.
Added by Acts 1995, 74th Leg., ch. 419, § 5.14, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1065, § 1, eff. Sept.
1, 1997; Acts 1997, 75th Leg., ch. 1122, § 17, eff. Sept. 1,
1997; Acts 2003, 78th Leg., ch. 785, § 71, eff. Sept. 1, 2003.
§ 58.0171. REVIEW OF DEPARTMENT PLANS AND BUDGET
REQUEST. The department shall provide the board with sufficient
opportunity to review and comment on the finance program-related
portions of the department strategic plan and the department
biennial appropriation request, and any revision of a finance
program-related portion of the plan or request, before submission
to the legislature.
Added by Acts 1995, 74th Leg., ch. 419, § 5.15, eff. Sept. 1,
1995.
§ 58.0172. BOARD CONFLICT OF INTEREST. (a) An
officer, employee, or paid consultant of a Texas trade association
in the field of agriculture may not be a member of the board.
(b) A person who is the spouse of an officer, manager, or
paid consultant of a Texas trade association in the field of
agriculture may not be a member of the board.
(c) For the purposes of this section, a Texas trade
association is a nonprofit, cooperative, and voluntarily joined
association of business or professional competitors in this state
designed to assist its members and its industry or profession in
dealing with mutual business or professional problems and in
promoting their common interest.
(d) A person may not serve as a member of the board or act as
the general counsel to the board if the person is required to
register as a lobbyist under Chapter 305, Government Code, because
of the person's activities for compensation on behalf of a
profession related to the operation of the board.
(e) A lending institution is not ineligible to participate
in the programs administered by the board solely because a member of
the board is also an officer, director, or employee of the lending
institution, provided that a board member shall recuse himself or
herself from any action taken by the board on an application
involving a lending institution by which the board member is
employed or for which the board member serves as an officer or
director.
Added by Acts 1995, 74th Leg., ch. 419, § 1.16, eff. Sept. 1,
1995. Amended by Acts 1999, 76th Leg., ch. 1459, § 10, eff. June
19, 1999.
§ 58.0173. REMOVAL OF BOARD MEMBER. (a) It is a ground
for removal from the board if a member:
(1) does not have at the time of appointment the
qualifications required by Section 58.012;
(2) does not maintain during service on the board the
qualifications required by Section 58.012;
(3) violates a prohibition established by Section
58.0172;
(4) cannot because of illness or disability discharge
the member's duties for a substantial part of the term for which the
member is appointed; or
(5) is absent from more than half of the regularly
scheduled board meetings that the member is eligible to attend
during a calendar year unless the absence is excused by majority
vote of the board.
(b) The validity of an action of the board is not affected by
the fact that it is taken when a ground for removal of a board member
exists.
(c) If the commissioner has knowledge that a potential
ground for removal exists, the commissioner shall notify the
chairman of the board of the potential ground. The chairman shall
then notify the governor and the attorney general that a potential
ground for removal exists. If the potential ground for removal
involves the chairman, the commissioner shall notify the next
highest officer of the board, who shall notify the governor and the
attorney general that a potential ground for removal exists.
Added by Acts 1995, 74th Leg., ch. 419, § 1.16, eff. Sept. 1,
1995.
§ 58.0174. STANDARDS OF CONDUCT. The commissioner or
the commissioner's designee shall provide to members of the board,
as often as necessary, information regarding their qualification
for office under this chapter and their responsibilities under
applicable laws relating to standards of conduct for state
officers.
Added by Acts 1995, 74th Leg., ch. 419, § 1.16, eff. Sept. 1,
1995.
§ 58.0175. SEPARATION OF RESPONSIBILITIES. The board
shall develop and implement policies that clearly separate the
policymaking responsibilities of the board and the management
responsibilities of the commissioner and the staff of the
department.
Added by Acts 1995, 74th Leg., ch. 419, § 1.16, eff. Sept. 1,
1995.
§ 58.0176. BOARD MEMBER TRAINING. (a) Before a member
of the board may assume the member's duties and before the member
may be confirmed by the senate, the member must complete at least
one course of the training program established under this section.
(b) A training program established under this section shall
provide information to the member regarding:
(1) the enabling legislation that created the board;
(2) the programs operated by the board;
(3) the role and functions of the board;
(4) the rules of the board;
(5) the current budget for funds the board
administers;
(6) the results of the most recent formal audit of the
board;
(7) the requirements of:
(A) Chapter 551, Government Code;
(B) Chapter 552, Government Code; and
(C) Chapter 2001, Government Code;
(8) the requirements of the conflict of interest laws
and other laws relating to public officials; and
(9) any applicable ethics policies adopted by the
department or the Texas Ethics Commission.
Added by Acts 1995, 74th Leg., ch. 419, § 1.16, eff. Sept. 1,
1995.
§ 58.0177. APPOINTED MEMBER PREPARATION PROGRAM. The
board shall provide each appointed member of the board financial
training adequate to prepare the member for the responsibilities of
board membership before the member may begin service.
Added by Acts 1995, 74th Leg., ch. 419, § 5.16, eff. Sept. 1,
1995.
SUBCHAPTER C. PURPOSES AND POWERS
§ 58.021. PURPOSES OF AUTHORITY. (a) In order to
promote the expansion, development, and diversification of
production, processing, marketing, and export of Texas
agricultural products and to promote the development of rural
businesses, the authority shall design and implement programs to
provide financial assistance to eligible agricultural businesses,
including programs:
(1) to make or acquire loans to eligible agricultural
businesses;
(2) to make or acquire loans to lenders to enable those
lenders to make loans to eligible agricultural businesses;
(3) to insure, coinsure, and reinsure, in whole or in
part, loans to eligible agricultural businesses;
(4) to guarantee, in whole or in part, loans to
eligible agricultural businesses; and
(5) to administer or participate in programs
established by another person to provide financial assistance to
eligible agricultural businesses.
(b) The authority's programs shall be designed and
implemented to provide financial assistance to enable eligible
agricultural businesses to finance or refinance costs incurred in
connection with the development, increase, improvement, or
expansion of production, processing, marketing, or export of Texas
agricultural products and for the development of rural
agriculture-related businesses, including but not limited to the
costs of:
(1) acquisition of and improvements to land or
interests in land;
(2) acquisition, construction, rehabilitation,
operation, and maintenance of buildings, improvements, and
structures;
(3) site preparations;
(4) architectural, engineering, legal, and related
services;
(5) acquisition, installation, rehabilitation,
operation, and maintenance of machinery, equipment, furnishings,
and facilities;
(6) acquisition, processing, or distribution of
inventory;
(7) research and development;
(8) financing fees and charges;
(9) interest during acquisition or construction;
(10) necessary reserve fund;
(11) acquisition of licenses, permits, and approvals
from any governmental entity;
(12) pre-export and export expenses; and
(13) insect eradication and suppression programs.
(c) Except as otherwise provided by this subsection, the
maximum aggregate amount of loans made to or guaranteed, insured,
coinsured, or reinsured under this subchapter for a single eligible
agricultural business by the authority from funds provided by the
authority is $2 million. The authority may make, guarantee,
insure, coinsure, or reinsure a loan for a single eligible
agricultural business that results in an aggregate amount exceeding
$2 million, but not exceeding $5 million, if the action is approved
by a two-thirds vote of the board members present. The authority
may make, guarantee, participate in, insure, coinsure, or reinsure
loans to the entity designated to carry out boll weevil eradication
in accordance with Section 74.1011 in an amount approved by the
board to enable that entity to execute Subchapter D, Chapter 74.
The authority may issue an obligation on behalf of, or make,
guarantee, participate in, insure, coinsure, or reinsure loans to,
a state agency or an institution of higher education for the purpose
of the development, improvement, or expansion of an agricultural
product or an agriculture-related business in an amount approved by
the board. The authority may make, guarantee, participate in,
insure, coinsure, or reinsure loans to an eligible agricultural
business from the proceeds of revenue bonds issued in accordance
with Section 58.033 in an amount approved by the board.
(d) Notwithstanding any other provision of this section,
the authority may also design and implement programs to:
(1) further rural economic development; and
(2) reduce the amount of interest paid on loans
approved by the authority.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
Amended by Acts 1993, 73rd Leg., ch. 538, § 2, eff. Aug. 30,
1993; Acts 1995, 74th Leg., ch. 419, § 5.17, 10.09(11), eff.
Sept. 1, 1995; Acts 1995, 74th Leg., ch. 1014, § 1, eff. Jan. 1,
1996; Acts 1999, 76th Leg., ch. 1459, § 11, eff. June 19, 1999;
Acts 2001, 77th Leg., ch. 26, § 7, eff. May 2, 2001.
§ 58.0211. LOAN LIMITS. (a) The authority may make,
guarantee, insure, coinsure, or reinsure a loan up to the limits in
this section and Section 58.021 for a single eligible business
which already has an active loan if the action is approved by a
two-thirds vote of the members present.
(b) Except for programs administered by the authority under
Chapters 44 and 59, the authority shall give preference to loans,
loan guarantees, loan insurance, coinsurance, reinsurance, or any
other financing mechanism to value-added agricultural businesses.
The authority may decline to provide financial assistance to
businesses whose primary purpose is to establish or expand
conventional agricultural production.
(c) The authority may not guarantee more than 90 percent of
a loan to an eligible agricultural business made by a private
lender.
Added by Acts 1995, 74th Leg., ch. 419, § 5.18, eff. Sept. 1,
1995.
§ 58.022. POWERS OF AUTHORITY. The authority has all
powers necessary to accomplish the purposes and programs of the
authority, including the power:
(1) to adopt and enforce bylaws, rules, and procedures
and perform all functions necessary for the board to carry out this
chapter;
(2) to sue and be sued, complain, and defend, in its
own name;
(3) to adopt and use an official seal and alter it when
considered advisable;
(4) to acquire, hold, invest, use, pledge, and dispose
of its revenues, income, receipts, funds, and money from every
source and to select one or more depositories, inside or outside the
state, subject to this chapter, any resolution, bylaws, or in any
indenture pursuant to which the funds are held;
(5) to establish, charge, and collect fees, charges,
and penalties in connection with the programs, services, and
activities provided by the authority in accordance with this
chapter;
(6) to issue its bonds, to provide for and secure the
payment of the bonds, and provide for the rights of the owners of
the bonds, in the manner and to the extent permitted by this
chapter, and to purchase, hold, cancel, or resell or otherwise
dispose of its bonds, subject to any restrictions in any resolution
authorizing the issuance of its bonds;
(7) to procure insurance and pay premiums on insurance
of any type, in amounts, and from insurers as the board considers
necessary and advisable to accomplish any of its purposes;
(8) to make, enter into, and enforce contracts,
agreements, including management agreements, for the management of
any of the authority's property, leases, indentures, mortgages,
deeds of trust, security agreements, pledge agreements, credit
agreements, and other instruments with any person, including any
lender and any federal, state, or local governmental agency, and to
take other actions as may accomplish any of its purposes;
(9) to own, rent, lease, or otherwise acquire, accept,
or hold real, personal, or mixed property, or any interest in
property in performing its duties and exercising its powers under
this chapter, by purchase, exchange, gift, assignment, transfer,
foreclosure, mortgage, sale, lease, or otherwise and to hold,
manage, operate, or improve real, personal, or mixed property,
wherever situated;
(10) to sell, lease, encumber, mortgage, exchange,
donate, convey, or otherwise dispose of any or all of its properties
or any interest in its properties, deed of trust or mortgage lien
interest owned by it or under its control, custody, or in its
possession, and release or relinquish any right, title, claim,
lien, interest, easement, or demand however acquired, including any
equity or right of redemption in property foreclosed by it, and to
do any of the foregoing by public or private sale, with or without
public bidding, notwithstanding any other law; and to lease or rent
any improvements, lands, or facilities from any person to effect
the purposes of this chapter;
(11) to request, accept, and use gifts, loans,
donations, aid, appropriations, guaranties, allocations,
subsidies, grants, or contributions of any item of value for the
furtherance of any of its purposes;
(12) to make secured or unsecured loans for the
purpose of providing temporary or permanent financing or
refinancing for eligible agricultural businesses for the purposes
authorized by this chapter, including the refunding of outstanding
obligations, mortgages, or advances issued for those purposes, and
charge and collect interest on those loans for such loan payments
and on such terms and conditions as the board may consider advisable
and not in conflict with this chapter;
(13) to secure the payment by the state or the
authority on guarantees and to pay claims from money in the
authority's funds pursuant to the loan guarantee and insurance
programs implemented by the authority;
(14) to purchase or acquire, sell, discount, assign,
negotiate, and otherwise dispose of notes, debentures, bonds, or
other evidences of indebtedness of eligible agricultural
businesses, whether unsecured or secured, as the board may
determine, or portions or portfolios of or participations in those
evidences of indebtedness, and sell and guarantee securities,
whether taxable or tax exempt under federal law in primary and
secondary markets in furtherance of any of the authority's
purposes; and
(15) to exercise all powers given to a corporation
under the Texas Non-Profit Corporation Act (Article 1396-1.01 et
seq., Vernon's Texas Civil Statutes), to the extent not
inconsistent with this chapter.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
§ 58.023. PROGRAMS RULES. (a) The board shall adopt
rules to establish criteria for determining which eligible
agricultural businesses may participate in programs that may be
established by the board. The board's rules must state that the
policy of the authority is to provide programs for providing
financial assistance to eligible agricultural businesses that the
board considers to present a reasonable risk and have a sufficient
likelihood of repayment. In establishing criteria for
participation, the board shall give priority to eligible
agricultural businesses that include producers of Texas
agricultural products in the ownership of the businesses. The
board shall adopt collateral or security requirements to ensure the
full repayment of that financial assistance and the solvency of any
program implemented under this chapter. The board shall approve
any and all extensions of that financial assistance under this
chapter, provided that the board may delegate this approval
authority to the administrator or the commissioner.
(b) The board shall also adopt rules to establish criteria
for lenders that may participate in the programs that may be
established by the board.
(c) Eligible agricultural businesses or lenders
participating in the authority's programs shall pay the costs of
applying for, participating in, and administering and servicing the
program, in amounts the board considers reasonable and necessary.
Any costs not paid by the eligible agricultural businesses or
lenders shall be paid from the funds of the authority, including
those funds established from bond proceeds.
(d) The board by rule shall adopt an agreement to be used
between a lender and an approved applicant under which the
authority makes a payment from the Texas agricultural fund for the
purpose of providing a reduced interest rate on a loan guaranteed to
a borrower under this subchapter. The board shall adopt rules to
implement this subsection.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
Amended by Acts 1999, 76th Leg., ch. 1459, § 12, eff. June 19,
1999; Acts 2001, 77th Leg., ch. 26, § 8, eff. May 2, 2001.
§ 58.024. AUTHORITY EXEMPTION FROM TAXATION. The
property of the authority, its income, and operations are exempt
from all taxes and assessments imposed by the state and all public
agencies and political subdivisions on property acquired or used by
the authority under this chapter.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
§ 58.025. PUBLIC HEARINGS. The administrator, the
commissioner, or an individual designated by the commissioner may
conduct public hearings relating to issuance of the authority's
bonds or the implementation of financial assistance, and the
commissioner may act as the applicable elected representative for
purposes of approving any bonds or financial assistance required to
be approved, including any approval required under Section 147(f)
of the Internal Revenue Code of 1986.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
§ 58.026. LIMITATION OF LIABILITY FOR CERTAIN
RECREATIONAL ACTIVITIES. Nothing in this chapter shall affect the
applicability of Chapter 75, Civil Practice and Remedies Code.
Added by Acts 1999, 76th Leg., ch. 1459, § 13, eff. June 19,
1999.
SUBCHAPTER D. BONDS
§ 58.031. ISSUANCE OF GENERAL OBLIGATION
BONDS. (a) The board by resolution may periodically provide for
the issuance of general obligation bonds as authorized by the Texas
Constitution for the establishment of the Texas agricultural fund
and the rural microenterprise development fund.
(b) Before authorizing the issuance of any general
obligation bonds, the board must determine that the issuance of
revenue bonds is not an economically advisable alternative for
carrying out the purposes of this chapter.
(c) The authority may issue and sell general obligation
bonds of the state for the purpose of providing money to establish a
Texas agricultural fund. The authority may issue the bonds in one
or several installments.
(d) Proceeds of the bonds issued under Subsection (c) of
this section shall be deposited in the Texas agricultural fund and
applied in accordance with the resolution authorizing the bonds:
(1) to provide financial assistance to eligible
agricultural businesses;
(2) to pay costs of issuance of those bonds and the
administration of any financial assistance program established
with money in the Texas agricultural fund; and
(3) together with any other available funds, to pay
the principal of or interest on or to discharge or redeem, in whole
or in part, any outstanding bonds issued by the authority.
(e) The authority may issue and sell general obligation
bonds of the state for the purpose of providing money to establish a
rural microenterprise development fund. The authority may issue
the bonds in one or several installments.
(f) Proceeds of the bonds issued under Subsection (e) of
this section shall be deposited in the rural microenterprise
development fund, which is created in Section 44.013.
Added by Acts 1989, 71st Leg., ch. 1247, § 1. Amended by Acts
1995, 74th Leg., ch. 1014, § 2, eff. Jan. 1, 1996.
§ 58.032. TEXAS AGRICULTURAL FUND. (a) The Texas
agricultural fund is a fund in the state treasury.
(b) The Texas agricultural fund may, at the direction of the
board, receive from the state or federal government or from any
other person, money that is to be administered by the authority in
connection with the provision of financial assistance to eligible
agricultural businesses under any program funded in whole or in
part with the proceeds of general obligation bonds issued to carry
out the purpose of this chapter.
(c) The board may provide for the establishment and
maintenance of separate accounts within the Texas agricultural
fund, including program accounts as prescribed by the board, an
interest and sinking account, a reserve account, and other accounts
provided for by the board in its resolutions. Repayments of
financial assistance under any program funded in whole or in part
with the proceeds of any series of general obligation bonds shall be
deposited first in the interest and sinking account as prescribed
by the board's resolutions authorizing such series of general
obligation bonds, and second in the reserve account in respect of
such series of general obligation bonds until that account is fully
funded as prescribed by the board's resolutions. The fund and all
accounts within it shall be kept and maintained at the direction of
the board and held in trust by the comptroller for and on behalf of
the authority and the owners of the general obligation bonds issued
in accordance with this chapter, and may be used only as provided by
this chapter. Pending its use, money in the fund shall be invested
as prescribed by the resolution by which the bonds were issued.
(d) To the extent the board determines that any money
credited to the Texas agricultural fund from repayments of
financial assistance is not required by Subsection (c) of this
section and the resolutions of the board to be held in the interest
and sinking account or reserve account to provide for the payment of
the principal of and interest on the outstanding general obligation
bonds issued by the authority, that money may be used by the
authority to pay the principal of and interest on revenue bonds
issued by the authority or for any other authorized purpose of the
authority, in accordance with this chapter and the authority's
resolutions authorizing general obligation bonds.
(e) If during the existence of the Texas agricultural fund
or during the time any general obligation bonds are payable from the
fund the board determines that there will not be sufficient money in
the interest and sinking account during the following fiscal year
to pay the principal of or interest on the general obligation bonds
or both the principal and interest that are to come due during the
following fiscal year, the comptroller of public accounts shall
transfer to the fund the first money coming into the state treasury
not otherwise appropriated by the constitution in an amount
sufficient to pay the obligations.
(f) The department may receive, and shall deposit in the
Texas agricultural fund, appropriations, grants, donations, earned
federal funds, and the proceeds of any investment pools operated by
the comptroller.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1;
Acts 1989, 71st Leg., ch. 1247, § 1, eff. Sept. 1, 1989. Amended
by Acts 1989, 71st Leg., ch. 455, § 9, eff. Aug. 28, 1989; Acts
1997, 75th Leg., ch. 1423, § 2.04, eff. Sept. 1, 1997.
§ 58.033. ISSUANCE OF REVENUE BONDS. (a) In addition
to the authority to issue general obligation bonds, the authority
may issue not more than $500 million of revenue bonds for the
purpose of providing money to carry out any purpose of the authority
under this chapter. The authority shall establish and maintain
funds and accounts, in accordance with Subsection (d) of this
section, that the board considers necessary to ensure payment of
the bonds and to provide for the use of the bond proceeds and the
implementation of the program financed. Proceeds of revenue bonds
shall be applied in accordance with the resolution authorizing
those bonds:
(1) to provide financial assistance:
(A) to eligible agricultural businesses; and
(B) for programs designed to further rural
economic development;
(2) to pay costs of issuance of those bonds and the
administration of any financial assistance program established by
the authority; and
(3) together with any other available funds, to pay
the principal of or interest on or to discharge or redeem, in whole
or in part, any outstanding bonds issued by the authority.
(b) The authority's revenue bonds are obligations solely of
the authority and are payable solely from funds of the authority
that are pledged to the repayment of the revenue bonds. The
authority may not use, except as provided in Section 58.032, or
pledge money in the Texas agricultural fund to repayment of its
revenue bonds. The authority's bonds are not and do not create or
constitute a pledge, giving, or lending of the faith or credit or
taxing power of the state. Each bond of the authority issued under
this section must contain a statement to the effect that the state
is not obligated to pay the principal of or any premium or interest
on the bond, and that neither the faith or credit nor the taxing
power of the state is pledged, given, or loaned to such a payment.
(c) Revenue bonds of the authority shall be payable as to
principal, interest, and redemption premium, if any, from and
secured by a first lien or a subordinate lien on and pledge of all or
any part of the property, revenues, income, or other resources of
the authority, as specified in the board's resolution authorizing
issuance of those bonds, including mortgages or other interests in
property financed, with the proceeds of such bonds, repayments of
financial assistance, earnings from investments or deposits of the
funds of the authority, fees, charges, and any other amounts or
payments received pursuant to this chapter, and any appropriations,
grants, allocations, subsidies, supplements, guaranties, aid,
contribution, or donations from the state or federal government or
any other person.
(d) The board may make additional covenants with respect to
the bonds and the pledged revenues and may provide for the flow of
funds, the establishment and maintenance and investment of funds,
which may include interest and sinking funds, reserve funds,
program funds, and other funds. Those funds shall be kept and
maintained in escrow and in trust by the comptroller for and on
behalf of the authority and the owners of its revenue bonds, in
funds held outside the treasury pursuant to Chapter 404, Government
Code. Those funds shall be used only as provided by this chapter,
and pending their use shall be invested as provided by any
resolution of the authority. Legal title to those funds shall be in
the authority unless or until paid out as provided by this chapter
or by the resolutions authorizing the authority's bonds. The
comptroller, as custodian, shall administer those funds strictly
and only as provided by this chapter and in those resolutions. The
comptroller shall invest the funds in investments authorized by law
for state funds. The state shall take no action with respect to
those funds other than that specified in this chapter and in those
resolutions.
(e) The board may provide in the resolution authorizing any
revenue bonds for the issuance of additional bonds to be equally and
ratably secured by lien on the revenues and receipts, or for the
issuance of subordinate lien bonds.
(f) Revenues of the authority that may be used as a source of
payment for the bonds or to establish a reserve fund to secure the
payment of debt service on the bonds or related obligations of the
authority include repayments of financial assistance, money
appropriated by the legislature to the authority for the purpose of
paying or securing the payment of debt service on the authority's
revenue bonds or related obligations, federal or private money
allocated to financial assistance programs established under this
chapter, amounts paid under any credit agreement for those
purposes, or any other money that the authority pledges or
otherwise commits for those purposes. To the extent that pledged
revenues include amounts appropriated by the legislature, the
revenue bonds must state on their face that those revenues are
available to pay debt service only if appropriated by the
legislature for that purpose.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1;
Acts 1989, 71st Leg., ch. 1247, § 1, eff. Sept. 1, 1989. Amended
by Acts 1997, 75th Leg., ch. 1423, § 2.05, eff. Sept. 1, 1997;
Acts 2001, 77th Leg., ch. 26, § 9, eff. May 2, 2001.
§ 58.034. GENERAL PROVISIONS RELATING TO
BONDS. (a) The authority's bonds may be issued from time to time
in one or more series or issues, in bearer, registered, or any other
form, which may include registered uncertified obligations not
represented by written instruments and commonly known as book-entry
obligations, the registration of ownership and transfer of which
shall be provided for by the authority under a system of books and
records maintained by the authority or by an agent appointed by the
authority in resolution providing for issuance of its bonds. Bonds
may mature serially or otherwise not more than 40 years from their
date. Bonds may bear no interest or may bear interest at any rate or
rates, fixed, variable, floating, or otherwise, determined by the
board or determined pursuant to any contractual arrangements
approved by the board, not to exceed the maximum net effective
interest rate allowed by Chapter 1204, Government Code. Interest on
the bonds may be payable at any time, and the rate of interest on the
bonds may be adjusted at such time as may be determined by the board
or as may be determined pursuant to any contractual arrangement
approved by the board. In connection with the issuance of its
bonds, the board may exercise the powers granted to the governing
body of an issuer in connection with the issuance of obligations
under Chapter 1371, Government Code, to the extent not inconsistent
with this chapter.
(b) The bonds issued under this chapter and interest
coupons, if any, are investment securities under the terms of
Chapter 8, Business & Commerce Code. The bonds are exempt
securities under The Securities Act (Article 581-1 et seq.,
Vernon's Texas Civil Statutes), and unless specifically provided
otherwise, under any subsequently enacted securities act. Any
contract, guaranty, or any other document executed in connection
with the issuance of bonds pursuant to this chapter is not a
security under The Securities Act (Article 581-1 et seq., Vernon's
Texas Civil Statutes), and, unless specifically provided
otherwise, any subsequently enacted securities act. The board is
authorized to do all things necessary to qualify the bonds for offer
and sale under the securities laws and regulations of the United
States and of the states and other jurisdictions in the United
States as the board shall determine.
(c) The bonds may be issued in the form and denominations
and executed in the manner and under the terms, conditions, and
details determined as provided by the board in the resolution
authorizing their issuance. If any officer whose manual or
facsimile signature appears on the bonds ceases to be an officer,
the signature is still valid and sufficient for all purposes as if
the officer had remained in office.
(d) All bonds issued by the authority are subject to review
and approval by the attorney general in the same manner and with the
same effect as is provided by Chapter 1371, Government Code.
(e) No fee may be charged by any other agency of this state
in connection with the issuance of the bonds or the allocation of a
portion of the state volume limitation on private activity bonds
either under executive order or legislative enactment. No
proceeding, notice, or approval is required for the issuance of any
bonds or any instrument as security except as provided by this Act.
Nothing in this subsection may be constituted to deprive the state
and its governmental subdivisions of their respective police powers
or to impair any police power of any official or agency of the state
or its subdivisions as may be provided by law.
(f) The state pledges to and agrees with the owners of any
bonds issued in accordance with this chapter that the state will not
limit or alter the rights vested in the authority to fulfill the
terms of any agreements made with the owners of the bonds or in any
way impair the rights and remedies of those owners until those
bonds, together with any premium and the interest on the bonds and
all costs and expenses in connection with any action or proceeding
by or on behalf of those owners, are fully met and discharged. The
authority is authorized to include this pledge and agreement of the
state in any agreement with the owners of those bonds.
(g) The bonds may be sold at public or private sale with or
without public bidding in the manner, at such rate or rates, price
or prices, and on such terms as may be determined by the board or
determined as provided in any contractual arrangement approved by
the board. The board also may enter into any contractual
arrangement under which the bonds are to be sold from time to time,
or subject to purchase, at such prices and rates, interest rate or
payment periods, and terms as determined pursuant to that
contractual arrangement approved by the board.
(h) Pending the preparation of definitive bonds, interim
receipts or certificates in the form and with the provisions that
are provided in the resolution may be issued to the purchaser or
purchasers of bonds sold under this chapter.
(i) The board may provide procedures for the replacement of
a mutilated, lost, stolen, or destroyed bond or interest coupon.
(j) The resolutions of the board issuing bonds may contain
other provisions and covenants as the board may determine.
(k) The board may adopt and have executed any other
proceedings or instruments necessary and convenient in the issuance
of bonds.
(l) Repealed by Acts 1993, 73rd Leg., ch. 433, § 1, eff.
Aug. 30, 1993.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1;
Acts 1989, 71st Leg., ch. 1247, § 1, eff. Sept. 1, 1989. Amended
by Acts 1993, 73rd Leg., ch. 433, § 1, eff. Aug. 30, 1993; Acts
2001, 77th Leg., ch. 1420, § 8.202, eff. Sept. 1, 2001.
§ 58.035. REFUNDING BONDS. The authority may issue,
sell, and deliver bonds to refund all or any part of its outstanding
bonds, including the payment of any redemption premium and interest
accrued, under such terms, conditions, and details as determined by
the board. Bonds issued by the authority may be refunded in the
manner provided by any other applicable statute, including Chapter
1207, Government Code. Bonds, the provision for the payment of all
interest and applicable premiums on which and the principal of
which has been made through the irrevocable deposit of money with
the comptroller in accordance with the provisions of such an
applicable statute, shall no longer be charged against the issuing
authority of the authority, and on the making of such provision such
issuing authority shall, to the extent of the principal amount of
such bonds, be restored.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1;
Acts 1989, 71st Leg., ch. 1247, § 1, eff. Sept. 1, 1989. Amended
by Acts 1997, 75th Leg., ch. 1423, § 2.06, eff. Sept. 1, 1997;
Acts 2001, 77th Leg., ch. 1420, § 8.203, eff. Sept. 1, 2001.
§ 58.036. PAYMENT ENFORCEABLE BY MANDAMUS. Payment of
the bonds and performance by the authority or the commissioner of
its or his functions and duties under this chapter and the Texas
Constitution may be enforced in the state supreme court by mandamus
or other appropriate proceeding.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1;
Acts 1989, 71st Leg., ch. 1247, § 1, eff. Sept. 1, 1989.
§ 58.037. BONDS AS INVESTMENTS. (a) The bonds are
legal and authorized investments for:
(1) banks;
(2) trust companies;
(3) savings and loan associations;
(4) insurance companies of all kinds and types;
(5) fiduciaries;
(6) trustees;
(7) guardians; and
(8) sinking and other public funds of the state,
municipalities, counties, school districts, and other political
subdivisions of the state.
(b) The bonds are eligible to secure the deposit of any
public funds of the state, municipalities, counties, school
districts, or other political subdivisions of the state, and the
bonds shall be lawful and sufficient security for the deposits to
the extent of their face value when accompanied by all unmatured
coupons attached to the bonds.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1;
Acts 1989, 71st Leg., ch. 1247, § 1, eff. Sept. 1, 1989.
§ 58.038. TAX STATUS OF BONDS. The bonds issued by the
authority, any transaction relating to the bonds, and any profits
made in the sale of the bonds are free from taxation by the state or
by any city, county, special district, or other political
subdivision of the state; provided that this section does not
exempt the owner of any property financed under this chapter from
any ad valorem, sales, use, excise, or other tax levied by the state
or any political corporation of this state.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1;
Acts 1989, 71st Leg., ch. 1247, § 1, eff. Sept. 1, 1989.
§ 58.039. REVIEW BOARD.
Text of section as added by Acts 1987, 70th Leg., 2nd C.S., ch. 32,
art. 2, § 1
(a) The bond review board is composed of:
(1) the governor;
(2) the lieutenant governor;
(3) the speaker of the house of representatives; and
(4) the comptroller of public accounts.
(b) The governor is chairman of the review board.
(c) Bonds may not be issued under this chapter, and proceeds
of bonds under this chapter may not be used to finance a program
unless the issuance of program, as applicable, has been reviewed
and approved by the review board.
(d) The review board may adopt rules governing application
for review, the review process, and reporting requirements.
(e) A member of the review board may not be held liable for
damages resulting from the performance of the members' functions
under this chapter.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 32, art. 2, § 1.
Amended by Acts 1997, 75th Leg., ch. 1423, § 2.07, eff. Sept. 1,
1997.
For text of section as added by Acts 1989, 71st Leg., ch. 1247, §
1, see § 58.039, post
§ 58.039. REVIEW BOARD.
Text of section as added by Acts 1989, 71st Leg., ch. 1247, § 1
Bonds may not be issued under this chapter, and proceeds of
bonds under this chapter may not be used to finance a program unless
the issuance or program, as applicable, has been reviewed and
approved by the bond review board. A member of the bond review
board may not be held liable for damages resulting from the
performance of the members' functions under this chapter.
Added by Acts 1989, 71st Leg., ch. 1247, § 1, eff. Sept. 1, 1989.
For text of section as added by Acts 1987, 70th Leg., 2nd C.S., ch.
32, art. 2, § 1, see § 58.039, ante
§ 58.040. CONSIDERATIONS IN FINANCING. In determining
whether to provide financing under this chapter, the board shall
consider the likelihood of success of the applicant and the effect
of the financing on job creation and retention in the state. The
board shall give preference to applicants who are Texas residents
doing business in the state, and then to applicants who can
demonstrate that the financed activities will take place
predominantly in this state.
Added by Acts 1989, 71st Leg., ch. 455, § 10, eff. Aug. 28, 1989.
SUBCHAPTER E. YOUNG FARMER LOAN GUARANTEE PROGRAM
§ 58.051. DEFINITIONS. In this subchapter:
(1) "Commercial lender" means a commercial lending
institution chartered by the state or federal government, including
a savings and loan association, a credit union, or a Farm Credit
System institution.
(2) "Eligible applicant" means a person applying for a
loan guarantee under this subchapter who:
(A) is at least 18 years of age but younger than
40 years of age; and
(B) complies with the application procedures
prescribed by this subchapter.
(3) "Plan" means the documentation submitted to the
lender in support of the application.
Added by Acts 1999, 76th Leg., ch. 1459, § 14, eff. June 19,
1999.
§ 58.052. YOUNG FARMER LOAN GUARANTEE
PROGRAM. (a) The board shall administer a loan guarantee program
that benefits eligible applicants who desire to establish or
enhance a farming or ranching operation or an agriculture-related
business.
(b) The board, either directly or through authority
delegated to the commissioner, may grant to an eligible applicant a
guarantee of a loan made by a commercial lender for the purposes
prescribed by this subchapter. The guarantee amount may not exceed
the lesser of $250,000 or 90 percent of the loan amount.
(c) The aggregate amount guaranteed under this subchapter
may not exceed twice the amount contained in the young farmer loan
guarantee account within the Texas agricultural fund.
(d) A loan guarantee recipient may use proceeds from the
loan for working capital for operating a farm or ranch, including
the lease of facilities and the purchase of machinery and
equipment, or for any agriculture-related business purpose,
including the purchase of real estate, as identified in the plan. A
loan guarantee is voidable by the board if the recipient uses loan
proceeds for any purposes other than those identified in the plan.
The board shall include this restriction as a condition in each loan
guarantee instrument executed under this subchapter.
(e) The board shall adopt an agreement, to be used between a
commercial lender and an approved eligible applicant, under which
the program provides a payment from money in the young farmer loan
guarantee account for the purpose of providing a reduced interest
rate on a loan guaranteed to a borrower under this subchapter. The
board shall adopt rules to implement this subsection. The maximum
rate reduction under this subsection shall not exceed three
percentage points.
Added by Acts 1999, 76th Leg., ch. 1459, § 14, eff. June 19,
1999.
§ 58.053. APPLICATION FOR LOAN GUARANTEE. (a) An
eligible applicant's documentation shall include the following for
the board's review:
(1) the plan, as submitted to the lender, for the
applicant's proposed farm or ranch operation or
agriculture-related business to be financed that includes a budget
for the proposed operation;
(2) a completed application for a loan from a
commercial lender on which an eligible applicant has indicated how
the loan proceeds will be used to implement the applicant's plan;
and
(3) the signed statement of a loan officer of the
commercial lender that a loan guarantee is required for approval of
the loan application.
(b) The board may charge a reasonable application fee for
processing an application filed under this section.
Added by Acts 1999, 76th Leg., ch. 1459, § 14, eff. June 19,
1999.
§ 58.054. BOARD CONSIDERATION OF LOAN GUARANTEE
APPLICATION. After reviewing the material submitted under Section
58.053, the board 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 applicant, including both potential job creation
and commercial benefits to the agricultural industry;
(2) the applicant's qualifications;
(3) the feasibility of the applicant's plan; and
(4) other repayment sources available to the
applicant.
Added by Acts 1999, 76th Leg., ch. 1459, § 14, eff. June 19,
1999.
§ 58.055. DEFAULT. If the recipient of a loan guarantee
defaults on a loan that is guaranteed under this subchapter and the
authority is required to honor its guarantee, the authority,
through its representative, may bring suit against the defaulting
party. Any suit brought by the authority under this section may
have venue in Travis County.
Added by Acts 1999, 76th Leg., ch. 1459, § 14, eff. June 19,
1999.
§ 58.056. MONEY FOR LOAN GUARANTEE PROGRAM. The
authority may accept gifts and grants of money from the federal
government, local governments, private corporations, or other
persons for use in the young farmer loan guarantee program. The
legislature may appropriate money for the program.
Added by Acts 1999, 76th Leg., ch. 1459, § 14, eff. June 19,
1999.
§ 58.057. YOUNG FARMER LOAN GUARANTEE
ACCOUNT. (a) The young farmer loan guarantee account is an
account in the Texas agricultural fund. Money in this account may
be used for purposes authorized by this subchapter.
(b) The account consists of funds and transfers made to the
account, grants and donations made for the purposes of the young
farmer loan guarantee program, income earned on money in the
account, and any other money received under this subchapter.
Notwithstanding Section 404.071, Government Code, income and
interest earned on money in the account shall be deposited to the
credit of the account. At the end of each state fiscal year the
authority shall transfer to the general credit of the Texas
agricultural fund any interest earned on the account that remains
after payment of any administrative expenses of the program. The
account is exempt from the application of Section 403.095,
Government Code.
(c) The board may spend not more than $100,000 during each
fiscal year from income earned on the account and from application
fees collected by the authority under Section 58.053 to pay the
costs of administering the program.
(d) The board shall attempt to administer the fund in a
manner that makes private donations to the fund an eligible
itemized deduction for federal income taxation purposes.
(e) The board has the same authority in administering the
young farmer loan guarantee program as it has in administering
other programs established by this chapter.
Added by Acts 1999, 76th Leg., ch. 1459, § 14, eff. June 19,
1999. Amended by Acts 2001, 77th Leg., ch. 26, § 10, eff. May 2,
2001.
