Emergency Sections An agency may adopt a new or amended section or repeal an existing section on an emergency basis if it determines that such action is necessary for the public health, safety, or welfare of this state. The section may become effective immediately upon filing with the Texas Register, or on a stated date less than 20 days after filing, for no more than 120 days. The emergency action is renewable once for no more than 60 days. Symbology in amended emergency sections. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 16. ECONOMIC REGULATION Part VIII. Texas Racing Commission Chapter 321. Pari-mutuel Wagering Subchapter B. Distribution of Pari-mutuel Pools 16 TAC sec.321.119 The Texas Racing Commission adopts on an emergency basis new sec.321.119, concerning odd-even. The section establishes the odd-even pari-mutuel wager. The section is adopted on an emergency basis to facilitate and expedite the receipt of state revenue from pari-mutuel wagering. The new section is adopted under Texas Civil Statutes, Article 179e, sec.3. 02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and under sec.11.01, which authorize the commission to adopt rules relating to pari-mutuel wagering. sec.321.119. Odd-Even. (a) The odd-even is not a parlay and has no connection with or relation to the win, place, and show pools shown on the totalisator board. The odd-even is a separate pool and shall be calculated as a win pool. (b) A person purchasing an odd-even ticket shall designate "odd" or "even". An "odd" ticket represents a wager on each race animal with an odd number as listed in the official program. An "even" ticket represents a wager on each race animal with an even number as listed in the official program. (c) If the race animal finishing first has an odd program number, the odd-even pool shall be distributed to the holders of tickets designating odd. If the race animal finishing first has an even program number, the odd-even pool shall be distributed to the holders of tickets designating even. (d) Except as otherwise provided by this subsection, if after wagering has begun an animal entered in an odd-even race is scratched, declared out, or prevented from racing, there will be no refund. The association, with the approval of the racing judges, may cancel the odd-even pool and refund all money wagered into that pool if there are less than tree odd program number race animals or less than three even program number race animals participating in a race. (e) Except as otherwise provided by this subsection, if a race ends in a dead heat for first place between a race animal with an odd program number and a race animal with an even program number, the program number of the third place finishing animal will determine the winners of the odd-even pool. If there is a dead heat for third place between a race animal with an odd program number and a race animal with an even program number, the program number of the fifth place finishing animal will determine the winners of the odd-evenpool. If a race ends a dead heat for the flirts place between three race animals, the type of program number of the majority of the animals involved in the dead heat will determine the winners of the odd-even pool. Issued in Austin, Texas, on December 14, 1992. TRD-9216773 Paula Cochran Carter General Counsel Texas Racing Commission Effective date: December 18, 1992 Expiration date: April 17, 1993 For further information, please call: (512) 794-8461 TITLE 22. EXAMINING BOARDS Part I. Texas Board of Architectural Examiners Chapter 3. Landscape Architects Subchapter C. Written Examinations 22 TAC sec.3.46 The Texas Board of Architectural Examiners adopts on an emergency basis an amendment to sec.3.46, concerning reproduction of the graphic portion of the registration examination. An emergency exists due to the necessity for security of the graphic portions of the examination. The amendment is adopted on an emergency basis under Texas Civil Statutes, Article 249c, which provide the Texas Board of Architectural Examiners with the authority to promulgate rules. sec.3.46. Scoring. (a)-(b) (No change.) [(c) Each candidate may obtain a copy of his/her graphic portions of tests 3, 4, 5, and 6 upon written request and payment of $5.00 per test. (Checks should be made payable to the Texas Board of Architectural Examiners.)] Issued in Austin, Texas, on December 18, 1992. TRD-9216788 Robert H. Norris Executive Director Texas Board of Architectural Examiners Effective date: December 21, 1992 Expiration date: April 20, 1993 For further information, please call: (512) 458-1363 Chapter 5. Interior Designers Subchapter B. Registration 22 TAC sec.5.31 The Texas Board of Architectural Examiners adopts on an emergency basis an amendment to sec.5.31, concerning requisite qualifications for registration. This amended section is adopted on an emergency basis to allow implementation of the registration process for interior designers in accordance with Texas Civil Statutes, Article 249e, which became effective September 1, 1991. The amendment is adopted on an emergency basis under Texas Civil Statutes, Article 249e, which provide the Texas Board of Architectural Examiners with the authority to promulgate rules. sec.5.31. Eligibility. (a) The board shall accept for interior designer registration without examination: (1) an applicant who files an application with this board no later than August 31, 1992, and who prior to September 1, 1992, had six or more years' total experience credits working independently or in the course of regular employment
    as a [full-time]: (A)-(D) (No change.) (2) (No change.) (b)-(c) (No change.) Issued in Austin, Texas, on December 18, 1992. TRD-9216786 Robert H. Norris Executive Director Texas Board of Architectural Examiners Effective date: December 21, 1992 Expiration date: April 20, 1993 For further information, please call: (512) 458-1363 TITLE 34. PUBLIC FINANCE Part IX. Texas Bond Review Board Chapter 190. Allocation of the State's Limit on Certain Private Activity Bonds Subchapter A. Program Rules 34 TAC sec.sec.190.1-190.5, 190.8 The Texas Bond Review Board proposes amendments to 34 TAC, sec.sec.190. 1- 190.5, and 190.8. The amendments will clarify the application process and require additional information to accompany an initial application for reservation. The Texas Bond Review Board amends these section to facilitate maximum efficiency in the usage of allocation for private activity bonds. This emergency action is necessary because the program year begins on January 1, and applications will be filed beginning January 4. The previously published rules will not be in effect on that date. The amended sections are proposed under Texas Civil Statutes, Article 5190. 9a, which gives the Texas Bond Review Board the authority to propose rules pertaining to the adoption, implementation and administration of the allocation of the state's ceiling on private activity bonds. sec.190.1. General Provisions. (a)-(b) (No change.) (c) Definition of terms. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1)-(32) (No change.) (33) Local population-The population in the local governmental unit or units on whose behalf a housing finance corporation is created as determined by the most recent federal census estimate. If two local governmental units which overlap have each created housing finance corporations, prior to the submission of either the application for reservation or the application for carryforward by either housing finance corporation, there shall be excluded from the population of the larger local governmental unit that portion of the population of any smaller local governmental unit having a population as determined by the most recent federal census estimate of 20,000 or more which is within the larger local governmental unit, unless the smaller local governmental unit assigns its authority to issue qualified mortgage bonds, based upon its population, to the larger local governmental unit. A resolution assigning authority to issue qualified mortgage bonds must have been adopted within the twelve months preceeding the date of submission of the application to the board. (34)-(52) (No change.) (53) Unexpended proceeds-Proceeds remaining from a prior issue of bonds, including, in the case of qualified mortgage bonds, any unused portion of mortgage credit certificates. (d)-(f) (No change.) sec.190.2. Allocation and Reservation System. (a) (No change.) (b) On or after January 2, the board will accept applications for reservation from issuers authorized to issue private activity bonds. The board shall not grant a reservation to any issuer prior to January 10. If two or more issuers file an application for reservation of the state ceiling in any of the categories described in the Act, sec.2(b), the board shall conduct a lottery establishing the order of priority of each such application for reservation. Once the order of priority for all applications for reservation filed on or before January 10 is established, reservations for each issuer within the categories described in the Act, sec.2(b)(2)-(5) shall be granted in the order of priority established by such lottery. Each issuer of state voted issues granted a reservation initially shall be granted a reservation date which is the business day immediately following the date of such lottery.
      If more than 10 applications by issuers, other than issuers of state voted issues,
        are granted a reservation initially, an additional lottery will be held immediately to determine staggered reservation dates for such issuers
          . The order of priority for reservations in the category described in the Act, sec.2(b)(1), shall further be determined as provided in the Act, sec.3(c). (1)-(3) (No change.) (4) Within each category of priority, reservations shall be granted in reverse calendar year order of the most recent closing of qualified mortgage bonds by each housing finance corporation, with the most recent closing being the last to receive a reservation and with those housing finance corporations that have never received a reservation for mortgage revenue bonds being the first to receive a reservation, and, in the case of closings occurring on the same date, reservations shall be granted in an order determined by the board by lot. [All applications for a reservation filed after January 10 by any issuer for the issuance of bonds shall be accepted by the board in their order of receipt.] (c) (No change.) (d) All applications for a reservation filed after January 10 by any issuer for the issuance of bonds shall be accepted by the board in their order of receipt. (e)
            [(d)] An application for a reservation may not be submitted after December 14. (f)
              [(e)] The amount of the state's ceiling that has not been reserved prior to December 15 and any amount previously reserved that becomes available on or after that date because of the cancellation of a reservation or any other reason, may be designated, by the board, as carryforward for the carryforward purposes outlined in the code through submission of the application for carryforward and any other required documentation. (g)
                [(f)] An issuer may submit an application for carryforward to the board at any time during the year through the last business day in December. (h)
                  [(g)] Issuers will be eligible for carryforward according to the priority classifications listed in the Act. sec.190.3. Filing Requirements For Applications For Reservation. (a) (No change.) (b) Application filing. The issuer shall submit one original and two copies of the application for reservation. Each application must be accompanied by the following: (1) (No change.) (2) the certificate regarding fees, on the form prescribed by the board; (3) (No change.) (4) a copy of the issuers articles of incorporation as certified by the secretary of state of Texas and by-laws, including amendments thereto and restatements thereof, or alternatively, a certification that there have been no amendments to the articles of incorporation or by-laws since the last submission of these items to the board; (5) a copy of the issuer's certificate of continued existence from the secretary of state of Texas or a copy of the issuers certificate of good standing from the comptroller of public accounts of Texas, dated within 30 days of submission of application; (6)
                    [(4)] a statement by the issuer, other than an issuer of a state- voted issue, that the bonds are not being issued for the same stated purpose for which the issuer has received sufficient carryforward during a prior year or for which there exists unexpended proceeds from a prior issue or issues of bonds issued by the same issuer; (7)
                      [(5)] if unexpended proceeds exist from a prior issue or issues of bonds, other than a state-voted issue,
                        issued by the
                          issuer or on behalf of the
                            issuer for the same stated purpose for which the bonds are the subject of this application, a statement by the trustee as to the current amount of unexpended proceeds that exists for each such issue. The issuer shall certify to the current amount of unexpended proceeds that exists for each issue should a trustee not administer the bond issues; (8)
                              [(6)] if unexpended proceeds other than prepayments exist from a prior issue or issues of bonds, other than a state-voted issue,
                                issued by issuer or on behalf of issuer for the same stated purpose for which the bonds are the subject of this application, a definite and binding financial commitment agreement which must accompany the application in such form as the board finds acceptable, to expend the unexpended proceeds within 12 months after the date of receipt by the board of an application for reservation. For purposes of this paragraph, the commitment by lenders to originate and close loans within a certain period of time shall be deemed a definite and binding agreement to expend bond proceeds within such period of time and any additional period of time during which such origination period may be extended under the terms of such agreement; provided however, that any such extension provision may be amended, prior to date on which the bond authorization requirements described in subsection (c) of this section must be satisfied, to provide that such period shall not be extended beyond 12 months after the date of receipt by the board of an application for reservation; (9)
                                  [(7)] if unexpended proceeds exist from a prior issue or issues of bonds, other than a state-voted issue,
                                    issued by the
                                      issuer or on behalf of the
                                        issuer for the same stated purpose for which the bonds are the subject of the pending application, a written opinion of legal counsel, addressed to the board, to the effect, that the board may rely on the representation contained in the application to fulfill the requirements of the Act and that the agreement referred to in paragraph (8)
                                          [(5)] of this subsection constitutes a legal and binding obligation of the issuer, if applicable, and the other party or parties to the agreement; (10)
                                            [(8)] a written opinion of legal counsel, addressed to the board, to the effect that the bonds are required to be included under the state ceiling and that the issuer is authorized under the laws of the state to issue bonds for projects of the same type and nature as the project which is the subject of the application. This opinion shall cite by constitutional or statutory reference, the provision of the Constitution or law of the state which authorizes the bonds for the project; [and] (11)
                                              [(9)] a qualified mortgage bond issuer that submits an application for reservation as described in the Act, sec.3(c), shall provide a statement certifying to the most recent closing of qualified mortgage bonds or the most recent date of a reservation received for mortgage revenue bonds and state the governmental unit(s) for which the local population was based for the issuance of bonds or for receipt of a reservation; and (12) For a qualified residential rental project issue, an issuer that submits an application as described in the Act, sec.3(c), shall provide a copy of an executed earnest money contract between the borrower and the seller of the project. This earnest money contract must be in effect at the time of submission of the application to the board. (c) Bond authorization requirements. Not later than 35 calendar days after an issue's reservation date, the issuer shall submit to the board: (1) (No change.) (2) the certificate regarding fees, on the form prescribed by the board; (3)-(4) (No change.) (5) if applicable, an amended agreement pursuant to subsection (b)(8)
                                                [(5)] of this section; (6) (No change.) (d) (No change.) (e) Closing documents. Not later than the fifth calendar day after the day on which the bonds are closed the issuer shall file with the board: (1) a certificate regarding fees, on the form prescribed by the board; (2)-(7) (No change.) (8)
                                                  [(f)] For
                                                    [Closing documents for] mortgage credit certificates the issuer
                                                      shall file item (1) of subsection (e) and the following
                                                        [include]: (A)
                                                          [(1)] a certified copy of the issuer's resolution electing to convert state ceiling to mortgage credit certificates; (B)
                                                            [(2)] issuer's mortgage credit certificate election; and (C)
                                                              [(3)] program plan. (f)
                                                                [(g)] Additional information. The board may require additional information at any time before granting a certificate of reservation or certificate of allocation. (g)
                                                                  [(h)] Application restrictions. (1)-(3) (No change.) (4) No issuer may submit an application for reservation in excess of $50,000,000 except for the housing finance division of the Texas Department of Housing and Community Affairs and the Texas Higher Education Coordinating Board. sec.190.4. Filing Requirements For Applications For Carryforward. (a) (No change.) (b) Filing. The issuer shall submit one original and two copies of the application for carryforward. Each application must be accompanied by the following: (1) (No change.) (2) the certificate regarding fees, on the form prescribed by the board; (3)-(7) (No change.) (c) (No change.) (d) Closing documents. Not later than the fifth calendar day after the day on which the bonds are closed the issuer shall file with the board: (1) a closing documents checklist, on the form prescribed by the board; (2) a certificate of delivery on the form prescribed by the board; (3) a certified copy of the bond resolution authorizing the issuance of bonds, and setting forth the specific principal amount of the bond issue; (4) if one is required, a copy of the approval of the governmental unit or governmental units, certified by a public official with the authority to certify such approval. This requirement shall not apply to any bonds for which the code does not require such a public hearing and approval of a governmental unit or governmental units; (5) other documents relating to the issuance of bonds, including a statement of the bonds'; (A) principal amount; (B) interest rate or the formula by which the interest is calculated; (C) maturity schedule; (D) purchaser or purchasers; and (6) an official statement. sec.190.5. Consideration of Qualified Applications By the Board. (a)-(e) (No change.) (f) If at any time none of the state's ceiling remains available for certificates of reservation in a specific category, but additional amounts become available in such specific category before June 1 because of cancellations or any other reason, those amounts shall be aggregated and reservations shall be granted from that category on June 1 to qualified applications in an order determined by lot number with respect to those applications having such numbers, and otherwise by date and time of receipt by the board. If any portion of state ceiling becomes available after June 1 and before August 25 in any specific category those amounts shall be aggregated and reservations shall be granted from that category on August 25 to qualified applications in an order determined by lot number with respect to those applications having such numbers, and otherwise by date and time of receipt by the board. The board may grant a reservation at any time on or after January 10 if the amount of state ceiling available in any category exceeds the amount of state ceiling applied for in that category by the next applicant. (g)-(j) (No change.) sec.190.8. Notices, Filings, and Submissions. (a) (No change.) (b) Applications, notices, and other written communication to, and filings with the board, should be addressed or delivered to the Bond Review Board, William P. Clements State Office Building, 300 West 15th Street, Suite 409,
                                                                    [Sam Houston Building, 201 East 14th Street, Room 506,] Austin, Texas 78701. (c) (No change.) Issued in Austin, Texas, on December 18, 1992. TRD-9216776 Beverly S. Bunch Interim Executive Director Texas Bond Review Board Effective date: January 1, 1993 Expiration date: January 31, 1993 For further information, please call: (512) 463-1741 Part X. Texas Public Finance Authority Chapter 225. Master Equipment Lease Purchase Program, Series B 34 TAC sec.sec.225.1, 225.4, 225.5, 225.7 The Texas Public Finance Authority adopts on an emergency basis new sec.sec.225.1, 225.3, 225.5, and 225.7, concerning the master lease purchase program and recovery of costs associated with that program. This chapter is adopted on an emergency basis to ensure a continuous and timely financing for projects of state agencies so as to enable state agencies to operate without disruption of service to the public. The new sections are adopted on an emergency basis under Texas Civil Statutes, Article 601d, which authorize the Texas Public Finance Authority to finance projects by one or more State agencies. sec.225.1. Purpose of the Rules. The Texas Public Finance Authority proposes these new rules, as Chapter 225, concerning the administration of the State of Texas Master Lease Purchase Program authorized by Texas Civil Statutes, Article 601d, s9A, for which debt service payments only have been appropriated and are to be applied as lease payments. Therefore, the Comptroller's Intercept is not included herein. This chapter defines certain terms pertaining to the operation of the Texas Master Lease Purchase Program, identifies the responsibilities of various parties in administering the Texas Master Lease Purchase Program, and establishes basic procedures under which State agencies may participate in the Texas Master Lease Purchase Program. sec.225.3. Definitions. Notwithstanding the definitions set forth in sec.221.3 and sec.223.3 of this title (relating to Notice of Request for Bond Issue and Definitions), the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Act-The Texas Public Finance Authority Act, Texas Civil Statutes, Article 601d, as amended. 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. 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, which will be separately itemized. Authority-The Texas Public Finance Authority, or any successors or assignees to its duties and functions. 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. Board-The board of directors of the Authority. Bond Review Board-The board created by Texas Civil Statutes, Article 717k-7, or any successors or assignees to its duties and functions. Bundled Purchases -Those purchases of multiple Eligible Projects individually valued at a minimum of $500 for and on behalf of one or more Client Agencies, which are aggregated into one vendor contract for acquisition. Client Agency-Any State Agency which has the authority, pursuant to applicable law, to finance Eligible Projects through the Program. Comptroller-The Comptroller of Public Accounts of the State of Texas, or any successors or assignees to its duties and functions. Comptroller's Interagency Agreement-The provision contained in the Master Lease Agreement and in the Lease Supplements 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. 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. 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. DIR-The Department of Information Resources of the State of Texas, or any successors or assignees to its duties and functions. Eligible Project -Any physical structure that has been authorized by the Legislature for the Authority to finance and is used by a Client Agency to conduct official 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 State business, including, without limitation, telecommunications devices or systems, automated information systems, computers and computer software, 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 $500 per item. Fees-The amount assessed each Client Agency for participating in the Program. Fees include the Costs of Issuance and Administrative Costs. GSC-The General Services Commission of the State of Texas, or any successors or assignees to its duties and functions. Interim Financing -The initial financing source by which 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 (the Notes) in various amounts, not to exceed $300 Million outstanding at any one time. LBB-The Legislative Budget Board of the State of Texas, or any successors or assignees to its duties and functions. Lease Payments -Those amounts specified in the Lease Supplements and made pursuant to the Comptroller's Intercept payable semi-annually on the first day of February and the first day of August. The term "Lease Payments" also includes all payments made while the Eligible Project is in the Interim Financing and to Lease Revenue Bond holders. Lease Revenue Bonds-The long term bonds issued by the Authority either to refinance Eligible Project that has been initially financed through Interim Financing, or to fund the purchase of Eligible Project. 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 state identification number, the exact amount to be paid, the payee, and any updates or corrections to the Request for Financing. Master Lease Agreement-The Master Lease Agreement is the contract executed between the Authorized Representative of each 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 Eligible Project as specifically set forth in each Lease Supplement. Program-The State of Texas Master Lease Purchase Program described in these rules to be carried out by the Authority for the purpose of financing or refinancing of Eligible Projects. 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 which payments are set out in an agreement with the vendor. The agreement must provide for specific payments corresponding to completion of definitive components sufficient to create identifiable collateral. Request for Financing-A written 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 Eligible Project, issued by GSC which, when received by GSC, should be immediately forwarded by GSC to the Authority; (B) a copy of the contract prepared and awarded by DIR for Eligible Project, or for Bundled Purchases, which when executed by DIR should be immediately forwarded by DIR to the Authority; or (C) any awarded contract for 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. State Agency-A board, commission, department, office, agency, institution of higher education, or other governmental entity in the executive, judicial or legislative branch of state government. State Lease Fund-The fund by that name created by the Act, and the General Appropriations Act, 72nd Legislature, First Called Session. Statement of Acceptance-A statement contained in the Lease Supplement, executed by the Client Agency, which states that the Eligible Project has been received, inspected, and found to be in fully acceptable condition by the Client Agency, that all approvals, if any, have been obtained and that all other requirements of law have been satisfied and authorizing the Authority to provide payment to the vendor. Treasurer-The State Treasurer of the State of Texas, or any successors or assignees to its duties and functions. sec.225.5. Procedures for Financing Eligible Projects. (a) 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 Project 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, DIR, GSC, or other 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, the Client Agency will prepare the payment voucher together with all documents required by the Comptroller and will execute four copies of the Lease Supplement which also contains the Statement of Acceptance of the Eligible Project and will forward all copies along with the payment voucher and all other documents to the Authority. The Authority will immediately execute all four copies of the Lease Supplement, return one copy to the Client Agency, and forward one copy to the Comptroller. (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 Supplement, the Authority and the Comptroller will effect the Comptroller's Intercept to provide for the Lease Payments. (h) No later than on or before 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 State Lease Fund the Authority will provide a voucher to the Comptroller to effect debt service payment. The Treasurer will then transfer monies out of the State Lease Fund and make Lease Payments. (i) Within 30 days following each Lease Payment, the Authority will provide a Debit Memo to each Client Agency. (j) 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 the Lease Supplements being financed upon the occurrence of any of the following events: (1) any date on which the aggregate volume of Lease Supplements then being financed through the Interim Financing reaches $75 Million; or (2) 30 days prior to the end of any State biennial appropriation period which is currently August 31 of odd numbered years. (k) The Authority may adjust the Lease Payments under a Lease Supplement as a result of a change in interest rates, or a refinancing, or a change in Administrative Costs. When such adjustment in Lease Payments is effected, the Authority will, concurrent with establishing the new interest rate, provide an amended Amortization Schedule reflecting the adjusted Lease Payments to the Comptroller and to each Client Agency. (l) At least once during each fiscal year of the State the Authority will forward to the LBB a schedule, by Client Agency, of all Lease Payments. The Authority will use its best efforts to ensure that the Staff of the LBB will include in its budget recommendation sufficient appropriations to make all Lease Payments required under the Program. (m) All books and records of the Authority will be available to the LBB, the Comptroller, the State Auditor's Office, Client Agencies, and other interested parties which may, from time to time, request access to information regarding the Program. (n) All issuances of Lease Revenue Bonds under the Program will comply with all approvals required for the public issuance of debt by a State Agency, including review and approval by the Bond Review Board and the Attorney General. sec.225.7. Recovery of Costs. (a) The authority may recover its Administrative Costs by assessing each client agency on a pro rata basis for reimbursement of Administrative Costs. This pro rata reimbursement shall be calculated on a semi-annual basis to cover the ongoing costs of the Program. The exact amount assessed each Client Agency shall be separately disclosed on the Debit Memo. In no event shall Administrative Costs assessed each Client Agency exceed one and (1 1/2% per annum of their pro rata participation in the Program. (b) The Costs of Issuance shall be calculated on a pro rata basis for each Client Agency and included as an addition to principal along with the purchase price of Eligible Project. Issued in Austin, Texas, on December 10, 1992. TRD-9216732 Anne L. Schwartz Executive Director Texas Public Finance Authority Effective date: December 17, 1992 Expiration date: April 16, 1993 For further information, please call: (512) 463-5544.