(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 find 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 may make a loan available to a political subdivision in any manner the board considers economically feasible, including purchase of bonds or securities of the political subdivision or execution of a loan agreement with the political subdivision. The board may not purchase bonds or securities that have not been approved by the attorney general and registered by the comptroller.     
     Source Note:        The provisions of this §367.10 adopted to be effective March 9, 2004, 29 TexReg 2362