Tex. Gov't Code Section 2304.076
Conditions Under Which Loan Becomes Immediately Due


(a)

A borrower must agree that if the borrower voluntarily destroys, moves from, or relinquishes ownership of the rehabilitated housing on or before the first anniversary of the date the rehabilitation is completed:

(1)

the borrower’s housing rehabilitation loan becomes immediately due and payable; and

(2)

an interest surcharge is added sufficient to make the total interest paid equal an amount determined by the prevailing interest rates for rehabilitation loans from private sources at the time of the sale.

(b)

The local government that approved the loan may waive the interest surcharge if:

(1)

the local government finds that the borrower must sell the housing because of financial hardship or similar circumstances; and

(2)

the department consents to the waiver.

(c)

A local government that approved a housing rehabilitation loan may, with the consent of the department, take the following action if the borrower dies or the borrower sells or gives away property encumbered by the loan:

(1)

declare all or part of any deferred payments due and payable;

(2)

declare the balance of the loan due and payable; or

(3)

allow a buyer, donee, or other successor in title who qualifies under Section 2304.062 (Department Loan Rules) to assume the loan.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.

Source: Section 2304.076 — Conditions Under Which Loan Becomes Immediately Due, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­2304.­htm#2304.­076 (accessed Jun. 5, 2024).

2304.001
Short Title
2304.002
Purposes
2304.003
Definitions
2304.004
General Powers of Department
2304.005
Authority of Department to Adopt Minimum Housing Code Standards
2304.006
Limitation on Construction of Housing or Acquisition of Property by Department
2304.007
Prohibition on Borrowing, Incurring Obligations, or Pledging Credit
2304.008
Allocation of Available Loan Funds
2304.009
Relationship of Department and Local Governments
2304.010
Designation of Local Agency by Local Government
2304.011
Education Program Conducted by Local Government
2304.021
Fund
2304.022
Deposits to Fund
2304.023
Purposes of Fund
2304.024
Investment and Disbursement of Fund
2304.041
Designation of Area and Preparation of Plan
2304.042
Contents of Area Plan
2304.043
Approval of Area Plan
2304.044
Rejection of Area Plan
2304.061
Primary Use for Loan
2304.062
Department Loan Rules
2304.063
Loan Application
2304.064
Local Government Approval of Loan
2304.065
Department Approval
2304.066
Disbursement of Loan Funds
2304.067
Limit on Amount of Loan
2304.068
Administrative Charge Imposed by Local Government
2304.069
Interest Rate
2304.070
Term of Loan
2304.071
Installment Payments
2304.072
Loan to Be Secured
2304.073
Other Loan Conditions
2304.074
Adjustments if Borrower Unable to Repay Loan
2304.075
Disposition or Encumbrance of Property by Borrower
2304.076
Conditions Under Which Loan Becomes Immediately Due
2304.077
Acquisition of Property to Protect Loan
2304.078
Acquisition of Property to Enforce Lien
2304.079
Public Sale or Auction of Acquired Property
2304.080
Private Sale
2304.081
Contract for Servicing Loan
2304.082
Audit of Loans
2304.101
Standards for Contractors and Contracts
2304.102
Local Government Approval and Supervision of Contracts
2304.103
Advertising Requirement for Certain Contracts
2304.104
Performance and Payment Bonds

Accessed:
Jun. 5, 2024

§ 2304.076’s source at texas​.gov