Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 10 - TEXAS PUBLIC FINANCE AUTHORITY › Chapter 221 - DISTRIBUTION OF BOND PROCEEDS › Section 221.5 - Procedure for Disbursement of Bond Proceeds

Current through Reg. 49, No. 28; July 12, 2024
(a) Unless otherwise indicated herein,
				proceeds of bonds shall be distributed pursuant to the terms of the financing
				documents.
(b) Upon the closing of
				each series of bonds, the purchasers thereof shall pay the proceeds thereof in
				immediately available funds to the authority, a corporate trustee, or
				depository account designated by the client agency and specified in the
				financing documents.
(c) The
				executive director shall certify to the client agency requesting such financing
				that the funds are available and, if bond proceeds must be deposited to the
				Texas state treasury, to the comptroller that such funds have been deposited
				with the comptroller for the purpose of financing the related
				project.
(d) The authority will
				process vouchers for payment of costs of issuance. The client agency will
				process vouchers for payment of project costs.
(e) The client agency requesting financing
				from the authority shall pay project costs from the project fund in accordance
				with the contracts therefore and shall provide a written monthly report to the
				authority of the activity on each project in compliance with the reporting
				provisions of the financing documents. The authority will not assume any
				responsibility for the actual acquisition, construction, equipment, repair, or
				renovation of any project or the operation or maintenance thereof, but the
				authority may inspect projects at reasonable times upon reasonable notice to
				the client agency.
(f) No payments
				from the project fund may be made for any purpose other than paying costs of
				issuance and project costs, depositing amounts to any rebate fund for the
				benefit of the federal government in compliance with the Code, or deposit to
				the debt service fund of amounts remaining after payment of project
				costs.
(g) If any proceeds of the
				bonds remain in the project fund after the completion of a project and
				depositing amounts to any rebate fund for the benefit of the federal government
				in compliance with the Code, except the amounts specified by the client agency
				requesting such financing from the authority to be retained for any amount of
				any project costs not then due and payable or the liability for payment of
				which is being contested or disputed by the qualified agency and all labor,
				services, materials, and supplies used in the project have been fully paid and
				all costs and expenses incurred in connection therewith have been paid, then
				the client agency requesting such financing from the authority shall notify the
				authority that such proceeds are to be transferred from the project fund to the
				debt service fund; provided, however, that if the legislature has authorized
				additional projects of the same nature as the project theretofore financed
				during such time period, the board may, by formal resolution and if permitted
				by law, authorize the use of such amounts for such additional
				projects.
(h) If the bonds are
				intended by the board to bear interest which is not includable in gross income
				of the recipient pursuant to the Code, the use of proceeds of the bonds shall
				be restricted in such manner and to such extent, as may be necessary, to obtain
				and retain such tax exemption, in accordance with the Code and
				Regulations.
(i) The plans and
				specifications will be on file at the client agency and available at all times
				for inspection by the authority.