Article III, Section 50-c of the Texas Constitution ("Farm and Ranch Loan Security Fund")

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As amended November 7, 1995:

(a) The Legislature may provide that the Commissioner of Agriculture shall have the authority to provide for, issue, and sell general obligation bonds of the State of Texas in an amount not to exceed $10 million. The bonds shall be called "Farm and Ranch Loan Security Bonds" and shall be executed in such form, denominations, and on such terms as may be prescribed by law. The bonds shall bear interest rates fixed by the Legislature of the State of Texas.

(b) All money received from the sale of Farm and Ranch Loan Security Bonds shall be deposited in a fund hereby created with the Comptroller of Public Accounts to be known as the "Farm and Ranch Loan Security Fund." This fund shall be administered without further appropriation by the Commissioner of Agriculture in the manner prescribed by law.

(c) The Farm and Ranch Loan Security Fund shall be used by the Commissioner of Agriculture under provisions prescribed by the Legislature for the purpose of guaranteeing loans used for the purchase of farm and ranch real estate, for acquiring real estate mortgages or deeds of trust on lands purchased with guaranteed loans, and to advance to the borrower a percentage of the principal and interest due on those loans; provided that the Commissioner shall require at least six percent interest be paid by the borrower on any advance of principal and interest. The Legislature may authorize the Commissioner to sell at foreclosure any land acquired in this manner, and proceeds from that sale shall be deposited in the Farm and Ranch Loan Security Fund.

(d) The Legislature may provide for the investment of money available in the Farm and Ranch Loan Security Fund and the interest and sinking fund established for the payment of bonds issued by the Commissioner of Agriculture. Income from the investment shall be used for purposes prescribed by the Legislature.

(e) While any of the bonds authorized by this section or any interest on those bonds is outstanding and unpaid, there is hereby appropriated out of the first money coming into the Treasury in each fiscal year not otherwise appropriated by this Constitution an amount that is sufficient to pay the principal and interest on the bonds that mature or become due during the fiscal year less the amount in the interest and sinking fund at the close of the prior fiscal year.

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