Texas Agriculture Code

§ 58.074 — STATE LIABILITY PROHIBITED

AG § 58.074Title 4. AGRICULTURAL ORGANIZATIONS · Ch. 58. AGRICULTURAL FINANCE AUTHORITY · Art. F. FARMER INTEREST RATE REDUCTION PROGRAM

Statute text

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The state is not liable to an eligible lending institution for payment of the principal, interest, or any late charges on a loan made under this subchapter. A delay in payment or default on a loan by a borrower does not affect the validity of the deposit agreement. Linked deposits are not an extension of the state's credit within the meaning of any state constitutional prohibition.

Legislative history

Added by Acts 2009, 81st Leg., R.S., Ch. 506 (S.B. 1016), Sec. 1.16, eff. September 1, 2009.