Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 10 - TEXAS PUBLIC FINANCE AUTHORITY › Chapter 225 - MASTER LEASE PURCHASE PROGRAM › Section 225.5 - Procedures for Financing Eligible Projects

Current through Reg. 49, No. 28; July 12, 2024
(a)
				A client agency shall submit a request for financing when it is prepared to
				proceed with a program financing. A resolution of the client agency's governing
				body which authorizes the request for financing and the execution of documents
				required under the program shall be submitted with the request. Upon receipt of
				a request for financing the authority will review such request for completeness
				and compliance with program rules. If the request for financing is found to be
				complete and in compliance, the authority will accept the request for
				financing.
(b) Upon acceptance of
				the request for financing, if the client agency has not previously participated
				in the program, the authority will forward to the client agency a copy of the
				master lease agreement to be executed by an authorized representative. The
				master lease agreement is not subject to revision by the client agency and,
				when executed by the client agency's authorized representative and the
				authority, will serve as the basis for all future purchases of eligible
				projects under the program.
(c)
				After acceptance of the request for financing by the authority and execution of
				the master lease agreement, the client agency will proceed to procure the
				eligible project in compliance with all applicable laws and rules governing
				such procurement, including obtaining the approval, if any is required, of the
				Bond Review Board, the Department of Information Resources, the Comptroller of
				Public Accounts, or other Texas state agency.
(d) After the client agency has taken
				delivery and acceptance of the eligible project and determined that it meets
				all requirements for payment in full to the vendor, and the vendor's invoice
				complies with the terms and conditions of the contract, the client agency will
				prepare the lease supplement together with all documents required by the
				comptroller, sign the lease supplement, and forward it to the authority, along
				with all other documents required or requested by the authority. The authority
				will sign the lease supplement and provide a copy to the client
				agency.
(e) The authority will make
				a determination to initially fund the eligible project through the interim
				financing or through the issuance of lease revenue bonds. Such determination
				will be within the sole discretion of the authority.
(f) The authority will effect the payment in
				full to the vendor, or partial payment if the eligible project has been
				designated for progress payments.
(g) Upon receipt of the lease payment, the
				authority and the comptroller will effect the comptroller's intercept to
				provide for the lease payments.
(h)
				At least 48 hours prior to a lease payment, the authority will submit a voucher
				directing the comptroller to transfer sufficient monies from each client agency
				into the Texas state lease fund account and the authority will provide a
				voucher to the comptroller to effect debt service payment. The monies will then
				be transferred out of the Texas state lease fund account and lease payments
				will be made.
(i) Within 30 days
				following each lease payment, the authority will provide a debit memo to each
				client agency.
(j) Upon the
				occurrence of any of the following events listed in paragraphs (1) and (2) of
				this subsection, the authority may issue lease revenue bonds in order to
				refinance the lease supplements initially funded through the interim financing.
				The final maturity of lease revenue bonds shall not exceed the latest maturity
				of any lease supplement being financed. Revenue bonds may be issued:
(1) on any date the aggregate volume of lease
				supplements then being financed through the interim financing reaches $150
				million; or
(2) 30 days prior to
				the end of any Texas state biennial appropriation period which is currently
				August 31 of odd-numbered years.