Texas Register, Volume 37, Number 30, Pages 5519-5676, July 27, 2012 Page: 5,613
5519-5676 p. ; 28 cm.View a full description of this periodical.
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(I) that the partial redemption of bonds or other autho-
rized securities be made in inverse order of maturity;
(J) that insurance coverage be obtained and maintained
in an amount sufficient to protect the Board's interest in the project;
(K) that the Applicant, or an obligated person for whom
financial or operating data is presented, will undertake, either individu-
ally or in combination with other issuers of the Applicant's obligations
or obligated persons, in a written agreement or contract to comply with
requirements for continuing disclosure on an ongoing basis as required
by Securities and Exchange Commission (SEC) rule 15c2-12 and de-
termined as if the Board were a Participating Underwriter within the
meaning of such rule, such continuing disclosure undertaking being
for the benefit of the Board and the beneficial owner of the political
subdivision's obligations, if the Board sells or otherwise transfers such
obligations, and the beneficial owners of the Board's bonds if the politi-
cal subdivision is an obligated person with respect to such bonds under
rule 15c2-12. The ordinance or resolution shall also contain any other
requirements of the SEC or the IRS relating to arbitrage, private activ-
ity bonds or other relevant requirements regarding the securities held
by the Board;
(L) the maintenance of current, accurate and complete
records and accounts in accordance with generally accepted accounting
principles to demonstrate compliance with requirements in the financial
assistance documents;
(M) that the Applicant shall annually submit an audit,
prepared by a certified public accountant in accordance with generally
accepted auditing standards;
(N) that the Applicant shall submit a final accounting
within 60 days of the completion of the project;
(0) that the Applicant shall document the adoption and
implementation of an approved water conservation program for the du-
ration of the financial assistance;
(P) that the Applicant's agreement to comply with spe-
cial environmental conditions specified in the Board's environmental
determination as well as with any applicable Board laws or rules relat-
ing to use of the financial assistance;
(Q) that the Applicant shall establish a dedicated source
of revenue for repayment of the financial assistance;
(R) that interest payments shall commence no later than
one year after the date of closing and annual principal payments will
commence no later than one year after completion of project construc-
tion; and
(S) any other recitals mandated by the executive admin-
istrator;
(3) unqualified approving opinions of the attorney general
of Texas and, if bonds or other authorized securities are issued, a certi-
fication from the comptroller of public accounts that such debt has been
registered in that office;
(4) an unqualified approving opinion by a recognized bond
attorney;
(5) assurances that the Applicant will comply with any spe-
cial conditions specified by the Board's environmental determination
until all financial obligations to the State have been discharged;
(6) if the project will result in the development of surface
water or groundwater resources, the Applicant shall provide informa-
tion showing that it has the legal right to use the water that the projectwill provide. Upon receipt of the information, the executive adminis-
trator shall prepare a finding that the Applicant has a reasonable ex-
pectation of obtaining the water rights to the water that the project will
provide prior to any release of funds for planning, land acquisition and
design activities. Prior to the release of funds for construction, a written
water rights certification shall be prepared by the executive administra-
tor. The certification shall be based upon the Applicant's information
showing the necessary water rights have been acquired;
(7) evidence that the Applicant has the technical, manage-
rial, and financial capacity to maintain the system unless the use of the
funds will be to ensure that the system has the technical, managerial,
and financial capacity to comply with the national primary or applica-
ble state drinking water regulations over the long term;
(8) a Private Placement Memorandum containing a de-
tailed description of the issuance of the debt to be sold to the Board.
The Applicant shall submit a draft Private Placement Memorandum
at least 30 days prior to the closing of the financial assistance; a final
electronic version of the Memorandum shall be submitted no later
than seven days before closing;
(9) when any portion of the financial assistance is to be held
in an escrow account, the Applicant shall execute an escrow agreement,
approved as to form and substance by the executive administrator;
(10) if applicable, a home rule municipality pursuant to
Chapter 104, Local Government Code, shall execute a Certification of
Trust as defined in 371.1 of this title (relating to Definitions); and
(11) any additional information specified in writing by the
executive administrator.
(b) Certified bond transcript. Within sixty (60) days of clos-
ing the financial assistance, the Applicant shall submit a transcript of
proceedings relating to the debt purchased by the Board which shall
contain those instruments normally furnished by a purchaser of debt.
(c) Phased closing. The executive administrator may deter-
mine that closing the financial assistance in phases is appropriate when:
(1) the project has distinct phases for planning, design, ac-
quisition and for construction or if any one of the phases can be logi-
cally and practically divided into discrete sections;
(2) the project utilizes the design-build or construction
manager-at-risk process or any process wherein there is simultaneous
design and construction;
(3) there are limitations on the availability of funds;
(4) additional oversight is required due to the financial con-
dition of the Applicant or the complexity of the project; or
(5) due to any unique facts arising from the particular trans-
action.
371.71. Financial Assistance Secured by Promissory Notes and
Deeds of Trust.
(a) Applicability. This section contains closing requirements
for a water supply corporation, an eligible NPNC, or an eligible private
Applicant or other Applicant who is not authorized to issue bonds or
other securities. This section applies to financial assistance for either
pre-design or construction funding.
(b) Use of consultants. The executive administrator may rec-
ommend, but not require, that the entity engage the services of a fi-
nancial adviser or other consultant to ensure the appropriateness of the
proposed debt and to provide advice to the entity.ADOPTED RULES July 27, 2012 37 TexReg 5613
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Texas. Secretary of State. Texas Register, Volume 37, Number 30, Pages 5519-5676, July 27, 2012, periodical, July 27, 2012; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth243959/m1/93/: accessed May 5, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.