The state is not liable to an eligible lending institution for payment of the principal, interest, or any late charges on a loan made to an approved applicant. A linked deposit is not an extension of the state's credit within the meaning of any state constitutional prohibition.
Tex. Water Code § 17.910
STATE LIABILITY PROHIBITED
Added by Acts 2003, 78th Leg., ch. 200, Sec. 19(u), eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.