34 Tex. Admin. Code § 221.5 - Procedure for Disbursement of Bond Proceeds
(a) Unless otherwise indicated herein,
proceeds of bonds shall be distributed pursuant to the terms of the financing
documents.
(b) Upon the closing of
each series of bonds, the purchasers thereof shall pay the proceeds thereof in
immediately available funds to the authority, a corporate trustee, or
depository account designated by the client agency and specified in the
financing documents.
(c) The
executive director shall certify to the client agency requesting such financing
that the funds are available and, if bond proceeds must be deposited to the
Texas state treasury, to the comptroller that such funds have been deposited
with the comptroller for the purpose of financing the related
project.
(d) The authority will
process vouchers for payment of costs of issuance. The client agency will
process vouchers for payment of project costs.
(e) The client agency requesting financing
from the authority shall pay project costs from the project fund in accordance
with the contracts therefore and shall provide a written monthly report to the
authority of the activity on each project in compliance with the reporting
provisions of the financing documents. The authority will not assume any
responsibility for the actual acquisition, construction, equipment, repair, or
renovation of any project or the operation or maintenance thereof, but the
authority may inspect projects at reasonable times upon reasonable notice to
the client agency.
(f) No payments
from the project fund may be made for any purpose other than paying costs of
issuance and project costs, depositing amounts to any rebate fund for the
benefit of the federal government in compliance with the Code, or deposit to
the debt service fund of amounts remaining after payment of project
costs.
(g) If any proceeds of the
bonds remain in the project fund after the completion of a project and
depositing amounts to any rebate fund for the benefit of the federal government
in compliance with the Code, except the amounts specified by the client agency
requesting such financing from the authority to be retained for any amount of
any project costs not then due and payable or the liability for payment of
which is being contested or disputed by the qualified agency and all labor,
services, materials, and supplies used in the project have been fully paid and
all costs and expenses incurred in connection therewith have been paid, then
the client agency requesting such financing from the authority shall notify the
authority that such proceeds are to be transferred from the project fund to the
debt service fund; provided, however, that if the legislature has authorized
additional projects of the same nature as the project theretofore financed
during such time period, the board may, by formal resolution and if permitted
by law, authorize the use of such amounts for such additional
projects.
(h) If the bonds are
intended by the board to bear interest which is not includable in gross income
of the recipient pursuant to the Code, the use of proceeds of the bonds shall
be restricted in such manner and to such extent, as may be necessary, to obtain
and retain such tax exemption, in accordance with the Code and
Regulations.
(i) The plans and
specifications will be on file at the client agency and available at all times
for inspection by the authority.
Notes
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