(a) Permissible use of the commitment. The commitment is to be used to finance the project or purpose identified in the approved application.
(b) Interest. The interest rate shall be the rate approved by the Authority and/or lender, if applicable.
(c) Fees. The Authority may approve fees, as it deems appropriate, on a case-by-case basis. An application fee may be required at the time of application.
(d) Security. Loans must be secured by collateral of a type, amount, and value which, when considered with other criteria, ensures the full repayment of the financial assistance and the solvency of the Program.
(e) Maturity. The maturity of the commitment may not exceed thirty years, or the useful life of the collateral, whichever is less. The maturity shall be negotiated between the Authority, applicant, and participating lender, if applicable. For commitments secured by revenues, including sales tax, the amortization period is determined by the Debt Service Coverage Ratio and with consideration given to prior volatility in tax/revenue collections. Financing terms are set forth in the Credit Policy and Procedures.
(f) Reporting requirements to the Authority for a commitment provided by the Authority may include:
  (1) Annual financial audit, and annual employment information, when applicable;
  (2) Quarterly reports summarizing project status and any anticipated challenges in a format provided by the Authority; and
  (3) If necessary, the Authority may request other reports or documentation reasonably necessary for an assessment of the recipient's compliance with the program.
(g) Additional reporting requirements for participation loans provided by the lender to the Authority at minimum include:
  (1) Notification if the loan is placed on a watch list;
  (2) Quarterly reports indicating loan balance, repayment status and any significant change to the recipient's credit and/or financial position in the format requested by the Authority;
  (3) Notification in the event of any breaches or defaults in the terms, conditions, or covenants of the note, loan agreement or other loan documents; and
  (4) If necessary, the Authority may request other reports or documentation reasonably necessary for an assessment of the recipient's compliance with the program, or ability to comply with the program in the future.
(h) Lender Agreement. The Lender Agreement supplied by the Authority shall be evidence of the terms agreed upon by the Authority, recipient, and lender, if applicable, including loan administration, loan repayment, and any applicable terms, fees, and interest rate requirements.

Source Note: The provisions of this §28.80 adopted to be effective May 18, 2022, 47 TexReg 2856