(a) The maturity of a loan shall be determined by the board. (b) The fixed interest rate for a loan shall be equal to the asking yield for a U.S. Treasury note with a twelve-month maturity on the date that rates are set. (c) The executive administrator set the applicable interest rate for a loan five business days prior to: (1) the effective date of the loan agreement between the board and the political subdivision; or (2) the adoption by the political subdivision of the ordinance or resolution authorizing the bonds to be sold to the board. (d) If the loan closing does not occur within 45 days after the executive administrator sets the applicable interest rate, the executive administrator shall set a new interest rate as set forth in subsection (b) of this section or, at the sole discretion of the executive administrator, may re-authorize the previously identified interest rate.
Source Note: The provisions of this §367.11 adopted to be effective March 9, 2004, 29 TexReg 2362