SECTION 375.205. Board Obligations in Linked Deposits

(a) Upon execution of a linked deposit agreement by the executive administrator and an eligible lending institution, the Board, acting through its executive administrator, shall:

(1) deposit with the lending institution the amount of funds identified in the linked deposit agreement from the CWSRF program account; and

(2) perform such other terms and conditions as specified in the linked deposit agreement.

(b) The Board or the executive administrator may withdraw linked deposits and accrued interest from the lending institution without penalty according to the terms of the linked deposit agreement or if the institution ceases to be either a state depository or a Farm Credit System institution headquartered in Texas.

Source Note: The provisions of this §375.205 adopted to be effective September 8, 2010, 35 TexReg 8126