The following words and terms, when used in this chapter, shall
have the following meanings, unless the context clearly indicates
otherwise.
(1) Act--The Texas Public Finance Authority Act, Texas
Government Code, Chapter 1232, as amended.
(2) 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.
(3) 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, if any,
which will be separately itemized.
(4) Authority--The Texas Public Finance Authority,
or any successor to its duties and functions.
(5) 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, and
a client agency's participation therein.
(6) Board--The board of directors of the authority.
(7) Bond Review Board--The Bond Review Board as defined
by the Texas Legislature pursuant to Texas Government Code, Chapter
1231, or any successor to its duties and functions.
(8) Bundled purchases--Those purchases of multiple
eligible projects individually valued at a minimum of $100 for and
on behalf of a client agency, which are aggregated into one vendor
contract for acquisition.
(9) Client agency--Any Texas state agency or Texas
institution of higher education that participates in the program.
(10) Comptroller--The Comptroller of Public Accounts
of the State of Texas, or any successor thereto.
(11) Comptroller's interagency agreement--The agreement
between the authority and the comptroller 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.
(12) 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.
(13) 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.
(14) Eligible project--Any physical structure that
has been authorized by the Texas legislature for the authority to
finance and is used by a client agency to conduct official Texas 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 Texas state
business, or project, including, without limitation, telecommunications
devices or systems, automated information systems, computers and computer
software, and energy performance contracts, 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 $100 per item.
(15) Fees--The amount assessed each client agency for
participating in the program. Fees include the costs of issuance,
if any, and administrative costs.
(16) Interim financing--The initial financing source
by which an 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 in various amounts, not to exceed $300 million outstanding
at any one time, or such other amount authorized by resolution of
the board.
(17) LBB--The Legislative Budget Board of the State
of Texas, or any successor to its duties and functions.
(18) Lease payments--Those amounts specified in the
lease supplements and made pursuant to the comptroller's intercept.
The term "lease payments" also includes all payments and pre-payments,
if any, made while the eligible project is in the interim financing.
(19) Lease revenue bonds--The long-term bonds issued
by the authority either to refinance an eligible project that has
been initially financed through interim financing, or to fund the
purchase of an eligible project.
(20) 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 Texas state identification
number, the exact amount to be paid, the payee, and any updates or
corrections to the request for financing.
(21) Master lease agreement--The contract executed
by the authorized representative of a 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 an eligible project
as specifically set forth in each lease supplement.
(22) Program--The Texas Public Finance Authority Master
Lease Purchase Program described in this chapter to be carried out
by the authority for the purpose of financing or refinancing eligible
projects.
(23) 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 that are set out in
an agreement with the vendor. Such agreement must provide for specific
payments corresponding to completion of definitive components sufficient
to create identifiable collateral.
(24) Request for financing--A 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 the eligible project;
(B) a copy of the contract prepared and awarded by
the Texas Department of Information Resources for an eligible project;
or
(C) any awarded contract for an 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.
(25) State agency--A Texas board, commission, department,
office, agency, institution of higher education or other governmental
entity in the executive, judicial, or legislative branch of Texas
state government.
(26) State lease fund account--The account by that
name created by the Act.
(27) 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.
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