(a) The purpose of this subchapter is to implement the authority granted to the board by Natural Resources Code, Chapter 161, Subchapter K. The board shall only make loans under this subchapter that are secured by mortgages, deeds of trust, or other liens.
(b) Unless otherwise provided in this subchapter, the rules of the Veterans Land Board set forth in TAC, Title 40, Part 5, Chapter 175, Subchapter A, relating to General Rules and Contract Financing, shall apply to all loan transactions made by the board that are secured by a mortgage, deed of trust, or other lien on the land to be purchased. When applying any provision of Subchapter A to a mortgage loan transaction, those provisions shall be construed as necessary and appropriate for a mortgage loan transaction rather than a contract of sale transaction. The board may, by resolution, clarify the construction of any provision of Subchapter A in its application to a mortgage loan transaction.
(c) Any requirement of this subchapter that is not otherwise required by the constitution or statutes of this state may be waived on a case-by-case basis by the board. Any waiver request must be in writing and must describe the circumstances surrounding the request, including all of the reasons why the waiver is requested.
(d) Definitions.
  (1) "Borrower" means a person presently obligated to make payments to the board:
    (A) For a loan made, or purchased, by the board as provided by this subchapter;
    (B) For a purchase of land from the board under a contract of sale as provided by Subchapter A, relating to General Rules and Contract Financing, of this chapter; or
    (C) For a loan or contract of sale that the person assumed from the original borrower with the written consent of the board.
  (2) "Contract of sale" means those transactions described in Subchapter A, relating to General Rules and Contract Financing, in which the board takes fee title to property as security and sells to the borrower on a contract of sale and purchase. Title is conveyed to the borrower when all terms and conditions of the contract of sale have been satisfied.
  (3) "Lending institution" means a bank, savings bank, savings and loan association, credit union, trust company, mortgage bank, mortgage company, life insurance company, or other financial institution that customarily provides service or aids in the financing of mortgages on single-family residential housing, or a holding company for one of those institutions.
  (4) "Loan" or "mortgage loan" means a veterans' land loan made or acquired by the board under Natural Resources Code, Chapter 161, Subchapter K, relating to Land Loans, secured by a mortgage, deed of trust, or other lien on the land purchased with the proceeds of the loan.

Source Note: The provisions of this §175.51 adopted to be effective January 8, 2002, 27 TexReg 286