In addition to the definitions set forth in Texas Agriculture Code, §58.002, the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Definitions applicable to specific programs may be included within the applicable subchapter.

(1) Act--The Texas Agricultural Finance Act, Texas Agriculture Code, Chapter 58, as amended.

(2) Agricultural business--A business that is or proposes to be engaged in producing, processing, marketing, or exporting of an agricultural product, that is the entity designated to carry out the boll weevil eradication program in accordance with the Texas Agriculture Code, §74.1011, that is or proposes to be engaged in an agricultural-related business in rural areas of Texas, including a business that provides recreational activities associated with the enjoyment of nature or the outdoors on agricultural land, or a state agency or an institution of higher education that is engaged in producing an agricultural product.

(3) Agricultural product--An agricultural, horticultural, viticultural, or vegetable product, bees, honey, fish or other seafood, planting seed, livestock, a livestock product, a forestry product, poultry, or a poultry product, either in its natural or processed state, or any other agricultural product approved by the Authority, that has been produced, processed, or otherwise had value added to it in this state.

(4) Applicant--Any person, corporation, partnership, cooperative, joint venture, sole proprietorship, the entity designated to carry out the boll weevil eradication in accordance with Texas Agriculture Code, §74.1011, or a state agency or institution of higher education filing an application with the Authority for financial assistance under any program under this chapter. A lender may submit an application for any of the above-mentioned parties.

(5) Application--An application promulgated and approved by the Texas Agricultural Finance Authority Board of Directors, including supporting documentation and schedules as required by the Authority, for participation in the programs under this chapter.

(6) Authority--The Texas Agricultural Finance Authority.

(7) Board--The board of directors of the Authority.

(8) Business day--A day on which the department is open for business. The term shall not include Saturday, Sunday, or a traditional holiday officially observed by the state. The department's normal business hours are 8:00 a.m. to 5:00 p.m. each business day.

(9) Compliance report--A copy of the final loan documents.

(10) Comptroller--The Texas Comptroller of Public Accounts.

(11) Current market rate--The rate of interest on a United States treasury bill or note, the maturity date of which most closely matches the maturity date of the loan, or the end of the current biennium of the State, whichever is sooner, as determined by reference to the United States treasury bill or note section of the Wall Street Journal or equivalent publication including an electronic publication, published on the day the loan is priced.

(12) Default--The failure to perform an obligation established by the loan agreement, these rules or the Act.

(13) Deputy Commissioner--The Deputy Commissioner of the Texas Department of Agriculture.

(14) Equity--The applicant's contribution to a project in the form of cash, land, or other depreciable property.

(15) Fund--The Texas agricultural fund.

(16) Lender--A financial institution that makes commercial loans and is either a depository of state funds or an institution of the Farm Credit System headquartered in this state including a bank, banking association, savings bank, trust company, mortgage company, investment banker, credit union, underwriter, life insurance company, or any affiliate of those entities, and also including any other financial institution or governmental agency that customarily provides financing of agricultural loans or mortgages, or any affiliate of such an institution or agency, or any institution that the board determines is an experienced and sophisticated financial institution that agrees to participate in a financial program under this chapter.

(17) Loan guarantee amount--With respect to loans made by a lender and guaranteed by the Authority, a sum measured in terms of United States dollars that the Authority pays to the lender to acquire an undivided interest in any loan or, in the case of default by the borrower, the Authority agrees to pay to the lender, not to exceed the percentage as stated in the guaranty agreement.

(18) Programs--Any financial assistance program approved by the Authority board and defined by the rules under this chapter.

(19) Project--An enterprise which would further the expansion or development of production, processing, marketing or exporting of Texas agricultural products or other agricultural-related rural economic development projects.

(20) Qualified application--A completed application, including all documents and information required by the Authority and submitted by the lender or applicant, for participation in a program under this chapter.

(21) Rural--A municipality with a population of less than 50,000.

(22) Staff--The staff of the Authority or staff of the department performing work for the Authority.

(23) State--The State of Texas.

Source Note: The provisions of this §28.2 adopted to be effective September 1, 2009, 34 TexReg 5902; amended to be effective November 21, 2013, 38 TexReg 8190; amended to be effective July 12, 2021, 46 TexReg 4134