(a) Application forms. A lender seeking a loan guarantee from the Authority must use the application forms provided by the Authority and must include all information requested.
(b) Submission of application. All applicants are required to obtain approval from a lender before applications will be accepted by the Authority. Staff will be available to assist applicants and lenders in determining eligibility for a loan guarantee under this subchapter.
(c) Staff review. Staff will review the application for completeness and will notify the commercial lender of any additional information required. When the received application has been determined to be a qualified application, staff will review the lender's basis for approval, evaluate the project, and examine whether it meets all program requirements.
(d) Board or commissioner review. The staff shall submit a credit memorandum to the board which shall include a recommendation for approval or denial for each qualified application received by the program. The board shall approve or deny each qualified application. The board may impose additional terms and conditions as part of its approval. The board may delegate to the commissioner or deputy commissioner the authority to take any and all action described in this subsection.
(e) Notification of approval. Upon approval of the qualified application, staff will notify the lender in writing identifying the terms and conditions of the loan guarantee. The lender will prepare the written agreements and documents necessary to close the loan in accordance with the terms and conditions set forth in the notice of approval. The staff will send the lender final notice of guarantee approval after review and approval of the closing documents. Certain time limits may be set regarding the acceptance of loan commitments by the applicant and the lender; however, in no event shall the time period exceed 45 days from date of notification unless previously approved. The lender will disburse the loan according to the terms and conditions of the note and/or loan agreement.
(f) Denial of application. If the application is denied, staff will notify the lender in writing, identifying the reasons for denial. Applicants who have been denied may re-apply to the loan guarantee program.
(g) Providing false information. An applicant who knowingly provides false information in an application shall be disqualified from obtaining a loan guarantee under the program and shall be liable to the Authority and the department for any expense incurred by the Authority or the department as a result of the falsity. If the falsity is discovered after approval of a loan guarantee, the falsity may constitute grounds for revocation of the guarantee, and the Authority shall be entitled to exercise all its rights under the loan documents.
(h) Reporting to the board. Staff shall report to the board at each board meeting the status of loans of the Authority and any applications approved by the commissioner under the program since the last meeting of the board.

Source Note: The provisions of this §28.26 adopted to be effective September 1, 2009, 34 TexReg 5902; amended to be effective July 12, 2021, 46 TexReg 4134