Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 10 - TEXAS PUBLIC FINANCE AUTHORITY › Chapter 225 - MASTER LEASE PURCHASE PROGRAM › Section 225.3 - 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 Texas Public
				Finance Authority Act, Texas Government Code, Chapter 1232, as
				amended.
(2) Administrative
				costs--The reasonable costs incurred by the authority in developing,
				administering, and monitoring the program, which costs include, but are not
				limited to fees for the paying agent, the dealer, the servicing agent, and the
				authority's operational charges.
(3) Amortization schedule--A detailed
				schedule of principal and interest payments and administrative costs due for
				each lease payment as required under the master lease agreement and contained
				in each lease supplement. The principal amount will include the purchase price
				of the eligible projects and the costs of issuance, if any, which will be
				separately itemized.
(4)
				Authority--The Texas Public Finance Authority, or any successor to its duties
				and functions.
(5) Authorized
				representative--That person(s) duly authorized by a client agency and the
				authority to execute and deliver a master lease agreement and lease
				supplement(s) and such other documents as are deemed necessary or appropriate
				to implement the program, and a client agency's participation
				therein.
(6) Board--The board of
				directors of the authority.
(7)
				Bond Review Board--The Bond Review Board as defined by the Texas Legislature
				pursuant to Texas Government Code, Chapter 1231, or any successor to its duties
				and functions.
(8) Bundled
				purchases--Those purchases of multiple eligible projects individually valued at
				a minimum of $100 for and on behalf of a client agency, which are aggregated
				into one vendor contract for acquisition.
(9) Client agency--Any Texas state agency or
				Texas institution of higher education that participates in the
				program.
(10) Comptroller--The
				Comptroller of Public Accounts of the State of Texas, or any successor
				thereto.
(11) Comptroller's
				interagency agreement--The agreement between the authority and the comptroller
				authorizing the authority to access each client agency's appropriated funds to
				pay debt service on the program by delivering payment vouchers to the
				comptroller drawn on the client agency's designated funds.
(12) Costs of issuance--All costs associated
				with the program, including, but not limited to, printing costs, costs of
				preparation of documents, and fees to rating agencies, financial advisor,
				credit and liquidity providers, bond counsel, and underwriters.
(13) Debit memo--The notice provided to each
				client agency within 30 days after each lease payment. The debit memo will
				include the name of the client agency, each lease supplement by identifying
				number, the eligible project, the total amount paid reflected as principal and
				interest payments, administrative costs, the payment date, credit, if any, and
				the remaining principal balance.
(14) Eligible project--Any physical structure
				that has been authorized by the Texas legislature for the authority to finance
				and is used by a client agency to conduct official Texas state business,
				together with the land and major equipment or personal property that is
				functionally related to the physical structure, or any other fixed asset used
				by a client agency to conduct official Texas state business, or project,
				including, without limitation, telecommunications devices or systems, automated
				information systems, computers and computer software, and energy performance
				contracts, provided, that such property has a useful life of at least three
				years, and a value of at least $10,000, valued either individually or as a
				group of individual items of property, each having a minimum value of $100 per
				item.
(15) Fees--The amount
				assessed each client agency for participating in the program. Fees include the
				costs of issuance, if any, and administrative costs.
(16) Interim financing--The initial financing
				source by which an eligible project may be financed if it is deemed advisable
				by the authority. Interim financing will occur when the authority issues its
				Master Lease Purchase Program Tax-Exempt Commercial Paper Revenue Notes in
				various amounts, not to exceed $300 million outstanding at any one time, or
				such other amount authorized by resolution of the board.
(17) LBB--The Legislative Budget Board of the
				State of Texas, or any successor to its duties and functions.
(18) Lease payments--Those amounts specified
				in the lease supplements and made pursuant to the comptroller's intercept. The
				term "lease payments" also includes all payments and pre-payments, if any, made
				while the eligible project is in the interim financing.
(19) Lease revenue bonds--The long-term bonds
				issued by the authority either to refinance an eligible project that has been
				initially financed through interim financing, or to fund the purchase of an
				eligible project.
(20) Lease
				supplement--A form promulgated by the authority to be executed by each client
				agency which incorporates the terms of the master lease agreement and other
				agreements under the program. The lease supplement shall specifically identify
				the eligible project to be financed, including the serial number or other Texas
				state identification number, the exact amount to be paid, the payee, and any
				updates or corrections to the request for financing.
(21) Master lease agreement--The contract
				executed by the authorized representative of a client agency and the authority,
				containing such terms and provisions necessary to authorize the client agency
				to participate in the program and the authority to make payments on behalf of
				the client agency for the purchase of an eligible project as specifically set
				forth in each lease supplement.
(22) Program--The Texas Public Finance
				Authority Master Lease Purchase Program described in this chapter to be carried
				out by the authority for the purpose of financing or refinancing eligible
				projects.
(23) Progress
				payments--Periodic payments for eligible projects to be made during
				installation of and prior to acceptance of such eligible project by the client
				agency that are set out in an agreement with the vendor. Such agreement must
				provide for specific payments corresponding to completion of definitive
				components sufficient to create identifiable collateral.
(24) Request for financing--A request from a
				client agency to the authority to finance the acquisition of an eligible
				project through the program. Such request for financing shall include an
				itemized description of the eligible project prepared by the client agency
				including the estimated cost of acquisition, the estimated useful life of the
				project, the proposed date(s) of delivery and acceptance of the eligible
				project, the proposed use of the eligible project, and the source of funds to
				be used by the client agency to make the payments for the eligible project, and
				any one of the following documents:
(A) a
				copy of the purchase order for the eligible project;
(B) a copy of the contract prepared and
				awarded by the Texas Department of Information Resources for an eligible
				project; or
(C) any awarded
				contract for an eligible project, or for bundled purchases, a copy of which is
				sent to and received by the authority and which may be generated by any client
				agency.