SECTION 28.79. General Criteria for Approval of Financial Assistance

(a) Capital contribution. The Authority shall also consider the applicant's equity contribution in the project and whether the applicant has secured additional financial assistance.

(b) Reasonable risk. There must be reasonable assurance, in the judgment of the Authority, that the commitment provided can and will be repaid according to its terms. In making this judgment the Authority may consider the following:

(1) Evidence of the manner, means, and security of payment by the applicant;

(2) Projected cash flow of the applicant;

(3) Firm commitments from other independent and responsible financial sources for all other funds in excess of the Authority's commitment;

(4) Collateral and other sources of guarantees or insurance securing the Authority's commitment;

(5) Credit history and financial condition of the applicant;

(6) Historical financial information of applicant;

(7) The applicant's management; and

(8) Eligibility of lender, if applicable. The lender originating an application for the program must have a continuing ability to evaluate, perform and service the loan; and make the necessary reports as identified in the rules of the program. The lender must agree to exercise due diligence in the servicing, maintenance, review and evaluation of performance without regard to the existence of participation by the Authority or any other limitation of risk. The Authority reserves the right to refuse to enter into an agreement with lenders which, in the judgment of the Authority, do not have the ability to appropriately make and service the loan.

(c) Credit Policy. The Credit Policy and Procedures established by the Authority represents the minimum requirements for a commitment made by the Authority.

Source Note: The provisions of this §28.79 adopted to be effective May 18, 2022, 47 TexReg 2856