Sec. 17.9021.  APPLICATION FOR AND APPROVAL OF LOAN.  (a)  In reviewing an application by a political subdivision for a loan, the board shall consider the ability of the political subdivision to repay the loan and whether the loan will further water conservation in this state.
(b)  To approve a loan to a political subdivision, the board must determine that:
(1)  the public interest is served by providing the loan;
(2)  the political subdivision has the ability to repay the loan;  and
(3)  the loan will further water conservation in the state.
(c)  The board by rule shall establish the rate of interest it charges for a loan to a political subdivision.
Added by Acts 2003, 78th Leg., ch. 200, Sec. 19(s), eff. Sept. 1, 2003;  Acts 2003, 78th Leg., ch. 352, Sec. 19, eff. Sept. 1, 2003.