Texas Agriculture Code

§ 58.071 — DEFINITIONS

AG § 58.071Title 4. AGRICULTURAL ORGANIZATIONS · Ch. 58. AGRICULTURAL FINANCE AUTHORITY · Art. F. FARMER INTEREST RATE REDUCTION PROGRAM

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In this subchapter:

(1)"Eligible lending institution" means a financial institution that makes commercial loans, is either a depository of state funds or an institution of the Farm Credit System, and agrees to participate in the farmer interest rate reduction program and to provide collateral equal to the amount of linked deposits placed with it.

(2)"Linked deposit" means a time deposit governed by a written deposit agreement between the state and an eligible lending institution that provides:

(A)that the eligible lending institution pay interest on the deposit at a rate that is not less than the greater of:

(i)the current market rate of a United States treasury bill or note of comparable maturity minus three percent; or

(ii)0.5 percent;

…

Legislative history

Acts 2025, 89th Leg., R.S., Ch. 709 (H.B. 43), Sec. 7, eff. June 20, 2025.