SECTION 175.8. Contract of Sale and Purchase

(a) The contract of sale and purchase will be prepared by the board. It is to be executed by both the veteran and the chairman of the board.

(b) The board will specify the terms of the contract for each transaction.

(c) Each contract of sale and purchase shall bear a rate of interest designated by the board and shall not exceed 30 years in duration.

(d) If the tract contains improvements or is located in an underground irrigation water area, the chairman may require accelerated installments for the purpose of protecting the board's investment.

(e) Installment payments on a veteran-purchaser's contract of sale and purchase shall be due and payable in the following manner:

(1) for transactions which have closed before January 1, 1984, installment payments will be made on a semiannual basis, unless the veteran-purchaser elects to change to a monthly payment schedule.

(2) for transactions which close after January 1, 1984, payments will be made on a monthly basis.

(3) the installment dates will be specified in the contract.

(f) Advance payments may be made at any time. When making an advance payment the veteran should provide the board with written instructions as to the nature of the payment (i.e., whether it is an additional payment against principal or an advance installment payment). Making an additional payment against principal will not relieve the veteran of his obligation to make each installment payment as it becomes due.

(g) All taxes (state, school, water district, city, or any other tax) shall be kept current. Evidence of their payment shall be submitted to the board by May 1 of each year.

(h) If there are any material errors in the contract, the chairman may execute a correction contract. This instrument will then be provided to the veteran for his signature.

Source Note: The provisions of this §175.8 adopted to be effective March 11, 1986 11 TexReg 1005