In addition to the definitions set out in the Texas Agriculture Code, Chapter 58, as amended, and in subchapter A of this chapter (relating to Financial Assistance Rules), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Act--The Texas Agriculture Code, Chapter 44, §44.007.
  (2) Eligible borrower--A person who proposes to use the proceeds of a loan under the interest rate reduction program in a manner that will help accomplish the state's goal of fostering the:
    (A) creation and expansion of enterprises based on agriculture in this state; or
    (B) development or expansion of businesses in rural areas of the state.
  (3) Linked deposit--A time deposit governed by a written deposit agreement between the state and the lender that provides that:
    (A) the lender pay interest on the deposit at a rate that is not less than the greater of:
      (i) the current market rate minus 2%; or
      (ii) 1.5%;
    (B) the state not withdraw any part of the deposit before the expiration of a period set by a written advance notice of the intention to withdraw; and
    (C) the eligible lending institution agree to lend the value of the deposit to an eligible borrower at a maximum rate that is the linked deposit rate plus a maximum of 4.0%.
  (4) Program--The Interest Rate Reduction Program authorized by the Act, §44.007.

Source Note: The provisions of this §28.13 adopted to be effective September 1, 2009, 34 TexReg 5902; amended to be effective November 21, 2013, 38 TexReg 8190; amended to be effective July 12, 2021, 46 TexReg 4134