SECTION 177.4. Bonds

(a) Use of product development bond proceeds. The proceeds of the product development bonds may be used:

(1) to fund reasonably required reserve accounts.

(2) to pay costs incurred in issuing the bonds; and

(3) to either:

(A) fund loans made by the bank to an applicant to provide financing to aid in the development and production, including the commercialization, of new or improved products in this state; or

(B) refund or redeem all or part of any outstanding bonds.

(b) Use of small business incubator bond proceeds. The proceeds of the small business incubator bonds may be used:

(1) to fund reasonably required reserve accounts.

(2) to pay all costs incurred in issuing the bonds; and

(3) to either:

(A) fund loans made by the bank to an applicant to provide financing to foster and stimulate the development of small businesses in this state; or

(B) refund or redeem all or part of any outstanding bonds.

(c) In no event shall the board, the governing body, the office, or the unit have any obligation, financial or otherwise, to any person for failure to issue, sell, or deliver its bonds.

Source Note: The provisions of this §177.4 adopted to be effective May 29, 2005, 30 TexReg 3089