The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Eligible lending institution--A financial institution that makes commercial loans, is either designated as an official state depository by the Texas comptroller of public accounts, herein referred to as a state depository, or an institution of the Farm Credit System headquartered in this state, agrees to participate in a linked deposit program established under §15.611 of the Water Code, and is willing to agree to provide collateral equal to the amount of linked deposits placed with it.
  (2) Individual water quality management plan--An approved land management plan that considers site-specific characteristics (such as soil types, slope, climate, vegetation, and land usage) to improve or conserve water resources.
  (3) Linked deposit--A deposit governed by a linked deposit agreement between the Board and an eligible lending institution that requires that:
    (A) the eligible lending institution pay interest to the Board on the deposit at a rate equal to the asking yield for a U.S. Treasury note with a twelve-month maturity as of the date five days preceding the submission of all the documents required of the eligible lending institution requesting a linked deposit agreement;
    (B) the state not withdraw any part of the deposit except as according to the terms of the linked deposit agreement and the terms of this division; and
    (C) the eligible lending institution agrees to lend the value of the deposit to a person at a rate not to exceed the interest paid by the eligible lending institution to the Board plus four percent.
  (4) Linked deposit agreement--A written agreement between the Board, acting through the executive administrator, and an eligible lending institution providing for the deposit by the Board of an amount of funds from the CWSRF program account with the eligible lending institution executed pursuant to the authority and according to the conditions of this subchapter.
  (5) Pledged security--Means the securities authorized by these rules and the linked deposit agreement negotiated to secure the Board's deposit of funds with the eligible lending institution.

Source Note: The provisions of this §375.201 adopted to be effective September 8, 2010, 35 TexReg 8126; amended to be effective July 4, 2016, 41 TexReg 4853