§ 436.1531 — LOANS FOR COMMUNITIES ADVERSELY AFFECTED BY DEFENSE BASE REDUCTION.

Texas § 436.1531

• Jurisdiction: Texas
• Code GV: Government Code

Text

Sec. 436.1531. LOANS FOR COMMUNITIES ADVERSELY AFFECTED BY DEFENSE BASE REDUCTION. (a) The commission may provide a loan of financial assistance to a defense community for an economic development project that minimizes the negative effects of a defense base reduction on the defense community as a result of a United States Department of Defense base realignment process that occurs during 1995 or later. The loan shall be made from the Texas military value revolving loan account established under Section 436.156 .
(b) On receiving an application for a loan under this section, the commission shall evaluate the economic development project to determine how the project will minimize the negative effects of a defense base reduction on the defense community, including the number of jobs that the project will create and the economic impact the project will have on the community.
(c) If the commission determines that a project will reduce the negative effects of a defense base reduction on the defense community, the commission shall:
(1) analyze the creditworthiness of the defense community to determine the defense community's ability to repay the loan; and
(2) evaluate the feasibility of the project to be financed to ensure that the defense community has pledged a source of revenue or taxes sufficient to repay the loan for the project.
(d) If the commission determines that the funds will be used to finance an economic development project that will reduce the negative effects of a defense base reduction on the defense community and that the project is financially feasible, the commission may award a loan to the defense community for the project. The commission shall enter into a written agreement with a defense community that is awarded a loan. The agreement must contain the terms and conditions of the loan, including the loan repayment requirements.
(e) The commission shall notify the Texas Public Finance Authority of the amount of the loan and the recipient of the loan and request the authority to issue general obligation bonds in an amount necessary to fund the loan. The commission and the authority shall determine the amount and time of a bond issue to best provide funds for one or multiple loans.
(f) The commission shall administer the loans to ensure full repayment of the general obligation bonds issued to finance the project.
(g) A project financed with a loan under this section must be completed on or before the fifth anniversary of the date the loan is awarded.
(h) The amount of a loan under this section may not exceed the total cost of the project.

Legislative History

Added by Acts 2005, 79th Leg., Ch. 396 (S.B. 1481 ), Sec. 3, eff. June 17, 2005. Amended by: Acts 2009, 81st Leg., R.S., Ch. 43 (H.B. 2546 ), Sec. 11, eff. September 1, 2009. Acts 2015, 84th Leg., R.S., Ch. 71 (S.B. 503 ), Sec. 1, eff. May 22, 2015. Acts 2015, 84th Leg., R.S., Ch. 330 (S.B. 1358 ), Sec. 8, eff. September 1, 2015.