Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 5 - OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM OFFICE › Chapter 181 - TEXAS LEVERAGE FUND PROGRAM › Section 181.2 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this chapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise.
(1) Act--The Development
				Corporation Act, Texas Local Government Code, Title 12, as amended.
(2) Applicant--An EDC filing an application
				for a Texas Leverage Fund program loan.
(3) Application--The information submitted by
				an applicant to the Office, including supporting documentation and schedules,
				required by the Office for loan underwriting and loan approval under this
				program.
(4) Approval--The
				executive director's, or his/her designee's, approval of the terms and
				conditions for a program loan and loan agreement between the Office and the
				EDC.
(5) Bank--The financial
				institution providing credit facilities for this program.
(6) Board of directors--The governing body of
				an EDC.
(7) City--The governmental
				entity creating the EDC.
(8)
				Cost--As defined by the Act, §501.002(6) as applied to the use of program
				loan proceeds to fund eligible projects.
(9) Debt Service Coverage Ratio--The ratio of
				the projected or actual sales and use tax receipts generated by the levy and
				collection of the economic development sales and use tax by the city for the
				benefit of an EDC, which sales and use tax receipts shall be determined by
				using the lowest 12 consecutive months of sales and use tax receipts of the 18
				months immediately preceding the date of determination thereof, to the
				scheduled maximum annual principal of and interest on the program loan plus the
				scheduled maximum annual principal of and interest on any other debt or
				obligation existing on the date of the program loan secured in whole or in part
				by and payable from such economic development sales and use tax on a parity
				with the proposed program loan and giving the holder thereof an equal and
				ratable claim to the proceeds of the economic development sales and use tax. In
				the event that an economic development sales and use tax has not been
				previously collected or has not been collected for at least 18 months, then
				there shall be estimated by the Office the economic development sales and use
				tax that may have been collected over that period had such economic development
				sales and use tax been in place.
(10) Economic development sales and use
				tax--That certain sales and use tax that may be levied by a city for the
				benefit of an EDC under either Chapter 504 or Chapter 505 of the Act.
(11) EDC--An economic development corporation
				created by a city pursuant to Chapter 504 or Chapter 505 of the Act.
(12) Executive director--The executive
				director of the Office.
(13)
				Federally assisted new communities--As defined by the Act, §2(11)(C) and
				§
									RSA
				180.2(a)(3)(M)
				of this title (relating to Industrial Revenue Bond Program).
(14) Full time equivalent job--Permanent
				employment for 1,820 hours or more per year.
(15) Interest rate--The floating prime or
				base rate published in the Wall Street Journal from time to time (Wall Street
				Journal Prime Rate) or the interest rate in effect under the Program guidelines
				from time to time.
(16) Largest
				Four Year Sales Tax Decline--A decline in the total sales tax receipts of the
				city calculated as follows: (HIGH - LOW) / HIGH X 100. For the purpose of this
				definition "LOW" shall mean the lowest sum of sales tax revenue receipts
				collected by a city for any calendar year (adjusted for changes in sales tax
				rates) during the four year period preceding the date of calculation, as
				determined from the most recent June 30 or December 31, as applicable, for
				which sales tax data is available, and "HIGH" shall mean the highest sum of
				sales tax revenue received collected for any calendar year (adjusted for
				changes in sales tax rates) during the four year period preceding the date of
				calculation, as determined from the most recent June 30 or December 31, as
				applicable, for which sales tax data is available and which occurred in a
				calendar year preceding the calendar year in which the "LOW"
				occurred.
(17) Largest Fifteen Year
				Sales Tax Decline--A percentage decline in the total sales tax receipts of a
				participating city calculated as follows: (HIGH - LOW) / HIGH X 100. For
				purposes of this definition "LOW" shall mean the lowest sum of sales tax
				revenue receipts collected by the city for any calendar year (adjusted for
				changes in sales tax rates) during the 15 year period preceding the date of
				calculation, as determined from the most recent December 31, and "HIGH" shall
				mean the highest sum of sales tax revenue receipts collected for any calendar
				year (adjusted for changes in sales tax rates) during this same period and
				which occurred in a calendar year preceding the calendar year in which the
				"LOW" occurred.
(18) Office--The
				Economic Development and Tourism Office in the Office of the
				Governor.
(19) Parity debt--Debt or
				other obligations, existing or incurred during the term of the program loan,
				secured in whole or in part by and payable from the economic development sales
				and use tax receipts of the city on a parity with the program loan and giving
				the holder an equal and ratable claim to the proceeds of the economic
				development sales and use tax.
(20)
				Program--The Texas Leverage Fund.
(21) Program guidelines--The Office
				guidelines relating to the program in effect at any particular time pursuant to
				the Act and the authority granted to the Office under the Master Resolution and
				First Supplemental Resolution, as amended.
(22) Program loan--Loan from the Office to
				the EDC under the program.
(23)
				Project--An eligible project as defined by the Act.
(24) Projected Debt Service--The scheduled
				maximum annual debt service on all parity debt including any program
				loan.
(25) Rating--The long-term
				general obligation debt rating assigned by a rating agency. Any reference in
				this chapter to the rating structure of one rating agency shall be deemed to
				include a reference to the equivalent rating or ratings of the other rating
				agency.
(26) Rating
				agency--Standard Poor's Corporation, Moody's Investors Service and Fitch
				Investors Service, Inc.
(27)
				Resolution--The resolution, order, ordinance, or other official action by the
				governing body of the city or EDC.
(28) Rules--The rules of the
				Office.
(29) State--The State of
				Texas.
(30) Texas Enterprise Zone
				Act--Texas Government Code, §§
									RSA
				2303.001 et seq., as amended.
(31) Texas Leverage Fund--The economic
				development program of the Office pursuant to which the Office makes loans,
				meeting certain criteria in accordance with the Master Resolution and First
				Supplemental Resolution, as amended, to certain EDCs to fund the cost of
				certain eligible projects as defined by the Act and which loans are secured by
				and paid from the economic development sales and use tax receipt
				proceeds.
(32) Trustee--A
				corporation with corporate trust powers serving in the capacity of trustee
				under the Office's Taxable Commercial Paper Notes Series A pursuant to a trust
				agreement between the corporation and the Office under the Master Resolution
				and First Supplemental Resolution, as amended.
(33) User--An individual, partnership,
				corporation, or any other private entity, whether organized for profit or not
				for profit, or a city, county district, or any other political subdivision or
				public entity of the state or federal government.