Texas Administrative Code › Title 19 - EDUCATION › Part 2 - TEXAS EDUCATION AGENCY › Chapter 33 - STATEMENT OF INVESTMENT OBJECTIVES, POLICIES, AND GUIDELINES OF THE TEXAS PERMANENT SCHOOL FUND › Subchapter AA - COMMISSIONER'S RULES › Section 33.1001 - Payments for Remittance to Charter District Bond Guarantee Reserve Fund

Current through Reg. 49, No. 28; July 12, 2024
(a) In this section, "charter district,"
				  "combination issue," and "refunding issue," have the meanings assigned to those
				  terms by §
										33.67
				  of this title (relating to Bond Guarantee Program for Charter
				  Schools).
(b) The following
				  provisions apply to charter district bonds guaranteed under §
										33.67
				  of this title that receive final approval from the commissioner of education in
				  the form of the permanent school fund certificate before September 1, 2017.
(1) A charter district that has bonds
				  guaranteed under §
											33.67
				  of this title must annually remit to the commissioner a payment for deposit in
				  the Charter District Bond Guarantee Reserve Fund established under the Texas
				  Education Code (TEC), §45.0571, as described in paragraphs (4) and (5) of
				  this subsection.
(2) To calculate
				  the total payments required under paragraphs (4) and (5) of this subsection for
				  charter district bonds guaranteed under §
											33.67
				  of this title with a closing date before March 1, 2017, the first annual amount
				  due under this section is the amount equal to 0.1% of the principal amount that
				  is outstanding on the date the bonds were issued, which is the closing date for
				  the bonds. The amount due annually for each subsequent payment due under this
				  section is the amount equal to 0.1% of the principal amount that is outstanding
				  on the anniversary of the closing date.
(3) To calculate the total payments required
				  under paragraphs (4) and (5) of this subsection for charter district bonds
				  guaranteed under §
											33.67
				  of this title with a closing date on or after March 1, 2017, the commissioner
				  will calculate an amount equal to 10% of the savings to the charter district
				  resulting from the lower interest rate on the bond due to the guarantee by the
				  permanent school fund.
(A) The annual amount
				  due to the Charter District Bond Guarantee Reserve Fund will be computed as R =
				  P x S x 0.1, where:
(i) "R" is the amount to
				  be contributed to Charter District Bond Guarantee Reserve Fund;
(ii) "P" is the outstanding principal amount
				  on the closing date of the bond for payments made under paragraph (4) of this
				  subsection or the outstanding principal amount on the anniversary of the
				  closing date of the bond for payments made under paragraph (5) of this
				  subsection; and
(iii) "S" is the
				  savings to the charter district as a result of the bond guarantee under §
													33.67
				  of this title, which is computed as the difference between the preceding
				  36-month moving average of the Thomson Reuters Municipal Market Data index
				  yield for the Baa twenty-year maturity and the preceding 36-month moving
				  average of the Thomson Reuters Municipal Market Data index yield for the AAA
				  twenty-year maturity. If the Thomson Reuters Municipal Market Data index is
				  discontinued, the commissioner shall choose another data source for a
				  reasonable period of time until this section can be amended with another
				  acceptable data source.
(I) The savings "S"
				  shall remain constant for the life of the newly guaranteed bond.
(II) If Thomson Reuters Municipal Market Data
				  index is decomposed to reflect each ratings step within the Baa universe, the
				  savings calculation shall be based on the charter district's actual rating to
				  the comparable rating in the decomposed index.
(B) The commissioner will semi-annually
				  compute "S," which is the value to be used to compute "R" for charter district
				  bonds, and post it on the agency's website during the first week of September
				  and March.
(4) The first
				  payment due under this section is due within 30 days of the closing date. The
				  commissioner will direct the comptroller to withhold the amount of this first
				  payment from the state funds otherwise payable to the charter district, on a
				  date that falls within 30 days of the closing date. If, on that date, the state
				  funds remaining to be paid to the charter district for the year are less than
				  the amount due to the reserve fund for that year, the commissioner will recover
				  the difference as authorized under the TEC, §42.258.
(5) Each subsequent annual payment is due on
				  the anniversary of the closing date. The commissioner will direct the
				  comptroller to annually, during the month of the anniversary date, withhold the
				  amount due to the reserve fund for that year from the state funds otherwise
				  payable to the charter district. If, on the anniversary date, the state funds
				  remaining to be paid to the charter district for the year are less than the
				  amount due to the reserve fund for that year, the commissioner will recover the
				  difference as authorized under the TEC, §42.258.
(6) The commissioner will provide a charter
				  district with a statement of the total and annual amounts due under this
				  section within 60 days of the date that the bonds approved for the guarantee
				  under §
											33.67
				  of this title are sold. The commissioner will calculate savings for refunding
				  issues, and the refunding portion of combination issues, using the principal
				  amount that is being refunded.
(7)
				  No payment is due on an anniversary date on which no principal amount is
				  outstanding. The total amount due under this section is the sum of all annual
				  payments due.