Part 10.
TEXAS WATER DEVELOPMENT BOARD
Chapter 371.
DRINKING WATER STATE REVOLVING FUND
Subchapter D. BOARD ACTION ON APPLICATION
31 TAC §371.52
The Texas Water Development Board (the board) adopts amendments
to 31 TAC §371.52 concerning lending rates under the Drinking Water State
Revolving Fund program without changes to the proposed text as published in
the March 8, 2002 issue of the
Texas Register
(27
TexReg 1662) and will not be republished. The amendments will set interest
rates for loans from the board to private and other entities for which the
interest on the bonds are subject to the federal income tax (taxable entities).
The current method for setting interest rates for taxable entities is to subtract
185 basis points from the prime lending rate. The prime lending rate is a
base rate for corporate loans made by commercial banks and it does not follow
the conventional indices and scales normally utilized by the board for establishing
interest rates.
The board proposes by this amendment to establish the interest for loans
to these private and other taxable entities to be 140% of the rate charged
on loans by the board to entities the interest on whose bonds is not subject
to the federal income tax (tax exempt entities). This percentage is the average
percentage between the rates published by Bloomberg Taxable Index for BBB
rated bonds and the rates for tax-exempt, general obligation, 20 year maturity,
mixed quality bonds published by Bond Buyer Index tax-exempt for the period
of March 1999 through November 2001. Concurrently with these amendments, the
board has proposed amendments to chapter 375 of the board's rules. Taken together,
these amendments will establish a uniform method by which interest rates are
calculated for private and taxable applicants, in each respective program.
There were no comments received on the proposed amendments.
The amendments are adopted under the authority of the Texas Water
Code §6.101 and §15.605 which provide the Texas Water Development
Board with the authority to adopt rules necessary to carry out the powers
and duties in the Water Code and other laws of the State.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 18, 2002.
TRD-200202417
Suzanne Schwartz
General Counsel
Texas Water Development Board
Effective date: May 8, 2002
Proposal publication date: March 8, 2002
For further information, please call: (512) 463-7981
Subchapter C. NONPOINT SOURCE POLLUTION LOAN AND ESTUARY MANAGEMENT PROGRAM
Chapter 375.
CLEAN WATER STATE REVOLVING FUND