(a) Grant payments made under APPA's in which the department is not named as the sponsor's agent, and loan payments, may be authorized upon application to the department. Such payments will be in proportion to the amount of the project satisfactorily completed at the time of the payment application. No more than 90% of the total loan or grant will be paid prior to the completion of the project and enactment of airport hazard zoning. The last 10% of the loan or grant amount will be paid only after the staff has inspected and approved the completed project. No loan or grant payment will be made until:
  (1) creation by the sponsor of a special airport fund as required by Transportation Code, §22.054, into which all revenues derived from all airport operations are to be deposited, and approval by the department of the sponsor's resolution or order creating the fund; and
  (2) passage of an airport hazard zoning ordinance/order approved by the department.
(b) For loan agreements, proof is made to the department of property damage insurance for the project, naming the Texas Department of Transportation Loan Fund as beneficiary in the total amount of the loan, both principal and interest.

Source Note: The provisions of this §30.214 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575; amended to be effective March 15, 2017, 42 TexReg 1153