Texas Administrative Code › Title 31 - NATURAL RESOURCES AND CONSERVATION › Part 10 - TEXAS WATER DEVELOPMENT BOARD › Chapter 363 - FINANCIAL ASSISTANCE PROGRAMS › Subchapter G - SMALL COMMUNITY EMERGENCY LOAN PROGRAM › Division 3 - CLOSING AND RELEASE OF FUNDS › Section 363.721 - Loan Closing

Current through Reg. 49, No. 28; July 12, 2024
(a) Loan documents.
					 Loan documents shall be executed at the time of closing and shall include the
					 following:
(1) the term of the loan and a
					 schedule for repayment of principal and interest;
(2) the interest rates for the loan, which
					 will be set as the standard rate under §
												363.33(a)(3)
					 of this title (relating to Interest Rates for Loans and Purchase of Board's
					 Interest in State Participation Projects);
(3) that an annual audit of the political
					 subdivision, prepared in accordance with generally accepted auditing standards
					 by a certified public accountant or licensed public accountant, be provided
					 annually to the executive administrator for the term of the loan;
(4) that a final accounting be made to the
					 executive administrator of the total sources and authorized use of project
					 funds if so requested by the executive administrator;
(5) that the political subdivision shall fix
					 and maintain rates and collect taxes and/or charges to provide:
(A) adequate operation, maintenance and
					 insurance coverage on the project in an amount sufficient to protect the
					 board's interest; and
(B) adequate
					 revenue to pay principal and interest on the loan as it comes due, or if the
					 loan being requested is in anticipation of permanent financing, a political
					 subdivision must provide sufficient evidence that demonstrates both its
					 authority to issue the permanent debt which will be used to refinance the
					 emergency loan and the ability to meet interest payments on the emergency
					 financing as well as sufficiently providing for principal and interest payments
					 under the permanent financing;
(6) if the political subdivision intends to
					 obtain permanent financing to pay the principal and any unpaid accrued interest
					 on the emergency loan, the political subdivision covenants that:
(A) it shall undertake all actions to obtain
					 such permanent financing at the earliest possible date; and
(B) the emergency loan will be prepaid on or
					 prior to the scheduled final maturity date with the proceeds of the permanent
					 financing debt issuance;
(7) that the political subdivision covenants
					 to abide by the board's rules and relevant statutes, including the Texas Water
					 Code, Chapter 15;
(8) that the
					 political subdivision covenants to comply with all applicable state and federal
					 environmental requirements prior to the initiation of construction and any
					 mitigation which might be required after construction;
(9) that the political subdivision will apply
					 any unused funds to the repayment of loan principal in inverse order of
					 maturity;
(10) that the political
					 subdivision shall maintain current, accurate and complete records and accounts
					 necessary to demonstrate compliance with financial assistance related legal and
					 contractual provisions;
(11) that
					 the political subdivision issuing bonds, or an obligated person for whom
					 financial or operating data is presented, will undertake, either individually
					 or in combination with other issuers of the political subdivision's obligations
					 or obligated persons, in a written agreement or contract to comply with
					 requirements for continuing disclosure on an ongoing basis substantially in the
					 manner required by Securities and Exchange Commission (SEC) rule 15c2-12 and
					 determined as if the board were a Participating Underwriter within the meaning
					 of such rule, such continuing disclosure undertaking being for the benefit of
					 the board and the beneficial owner of the political subdivision's obligations,
					 if the board sells or otherwise transfers such obligations, and the beneficial
					 owners of the board's bonds if the political subdivision is an obligated person
					 with respect to such bonds under rule 15c2-12; and
(12) any additional conditions that may be
					 imposed by the board or requested by the executive administrator.