(a) Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Bid--A bid is an offer to purchase a Type I or Type II tract submitted in the manner prescribed by the board.
  (2) Highest bidder--The person who submits the best and highest bid which satisfies all the terms, conditions, and guidelines set by the board for any sale of any tract.
  (3) Minimum bid amount--The minimum acceptable selling price set by the board for each Type I and Type II tract.
  (4) Type I land tract--When a tract is forfeited and first ordered for sale or lease by the board, it is automatically classified as Type I land.
  (5) Type II land tract--When Type I land has been made available for sale or lease and is not sold or leased by the board for any reason, it is automatically reclassified as Type II land at the moment the board determines that no acceptable bid was received.
(b) Costs of sale.
  (1) All property taxes which are, in the opinion of the board, lawfully due and owing on a Type I or Type II tract on the date it is resold by the board, may be paid from the proceeds of the issuance of bonds.
  (2) All costs to the board associated with selling a Type I or Type II tract, including administrative expenses, road construction, surveying, legal fees, real estate commissions, advertising expenses, and other similar costs, may be paid from the proceeds of the issuance of bonds.
(c) Sale of forfeited tracts.
  (1) Qualified purchasers.
    (A) Type I tracts shall be first offered for sale or lease only to veterans who meet the eligibility requirements of §175.2 of this title (relating to Application/Eligibility). Bids on Type I tracts shall be submitted to the board on or before the bid deadline set by the board. These bids shall be reviewed by the board and the board may, in its discretion, award any Type I tract to the highest bidder.
    (B) Any Type I tract not awarded by the board on the bid deadline date shall be immediately reclassified as Type II land. Type II tracts may be offered for sale or lease to both nonveterans and eligible veterans. Bids on Type II tracts may be reviewed by the chairman who may, in his or her sole discretion, award any Type II tract to the highest bidder.
  (2) Terms of sale.
    (A) The board may, in its sole discretion, set terms, conditions, and guidelines governing the sale of any tract.
    (B) The board may combine or subdivide Type I or Type II land to form individual Type I or Type II tracts.
    (C) Any tract formed by combining Type I and Type II shall be classified as Type I until it has been offered for sale or lease and is not sold or leased by the board for any reason. Thereafter, it shall be reclassified as Type II land.
    (D) Type II tracts shall be sold to an eligible veteran or non-veteran under a contract of sale and purchase or under a note and deed of trust.
  (3) Deposit. Each bidder shall be required to deposit, in cash, an amount designated by the board.
  (4) Duration. The land shall be sold under contract of sale and purchase or under a note and deed of trust not to exceed 30 years in duration.
  (5) Additional terms and conditions. Each contract of sale and purchase or note and deed of trust shall conform to the provisions of the Natural Resources Code and shall be in such form, and contain such terms and conditions, as the chairman of the board may prescribe.
  (6) Bid rejection. The board may reject any and all bids on Type I tracts. The chairman of the board may reject any and all bids on Type II tracts.
  (7) Forfeiture. If a successful bidder refuses to execute a contract of sale and purchase or a note and deed of trust, the money submitted with his bid may be forfeited and shall be deposited in the state treasury and credited to the fund.
(d) Bids.
  (1) Minimal amount. The board shall, in its sole discretion, set the minimum amount for which offers will be accepted for each Type I and Type II tract. Any costs to the board associated with selling a Type I or Type II tract, including road construction, surveying, advertising, legal fees, property taxes, real estate commissions, advertising expenses, and other similar costs, may be made part of the minimum bid amount.
  (2) Bid deadline.
    (A) The board may set a specific time and date on or before which bids pertaining to any tract must be submitted. In such event, no bid shall be awarded by the board prior to that time.
    (B) The board may elect to set no specific time and date on which bids pertaining to any tract must be submitted. In such event, the chairman of the board shall be authorized to review bids when and as received, and accept the first acceptable bid on any such tract.

Source Note: The provisions of this §175.18 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective October 11, 1988, 13 TexReg 4785; amended to be effective September 15, 1989, 14 TexReg 4473; amended to be effective June 9, 2003, 28 TexReg 4436; amended to be effective August 21, 2013, 38 TexReg 5311