(B) If an open-enrollment charter holder files an application
for a combination issue, the application will be treated as a single
issue for the purposes of eligibility for the credit enhancement.
A credit enhancement for the combination issue will be awarded only
if both the new money portion and the refunding portion meet all of
the eligibility requirements described in this subsection. The open-enrollment
charter holder making the application must present data to the commissioner
that demonstrate compliance for both the new money portion of the
issue and the refunding portion of the issue.
(C) The refunding transaction must comply with the
provisions of paragraphs (8) and (10) of this subsection.
(4) The commissioner in each month of each fiscal year
will estimate the amount of funds available to make payments under
the CSBEP from the FSP through the end of the fiscal year for purposes
of providing initial approval to the credit enhancement of bonds issued
for the benefit of open-enrollment charter holders under this section.
The commissioner will confirm that a sufficient amount of these funds
exists to enhance the credit of the bonds before the issuance of the
final approval for the credit enhancement in accordance with subsection
(g)(4) of this section.
(5) Before approving the credit enhancement of bonds
issued by open-enrollment charter holders under the CSBEP, the commissioner
must:
(A) allocate not more than 1.0% of the amount appropriated
for the FSP for purposes of the CSBEP; and
(B) make the determination described in paragraph (4)
of this subsection.
(6) If prioritization of applications is necessary
because of limited program capacity, the commissioner will prioritize
applications for the credit enhancement in the following way.
(A) Applications from open-enrollment charter holders
that have not had bonds issued previously will be considered before
applications from open-enrollment charter holders that have had bonds
issued previously.
(B) The commissioner first will prioritize by lottery
all applications received from open-enrollment charter holders that
have not had bonds issued previously.
(C) The commissioner then will prioritize by lottery
all applications received from open-enrollment charter holders that
have had bonds issued previously.
(7) An application received after the application deadline
will be considered a valid application for the subsequent month, unless
withdrawn by the submitting open-enrollment charter holder before
the end of the subsequent month.
(8) Each open-enrollment charter holder that submits
a valid application will be notified of the application status within
20 business days of the end of the month following the application
deadline. If an open-enrollment charter holder is awarded initial
approval for the credit enhancement as described in subsection (g)(3)
of this section, the following requirements must be met.
(A) The open-enrollment charter holder must comply
with the provisions for final approval described in subsection (g)(4)
of this section to maintain approval for the credit enhancement.
(B) The bonds must be approved by the Office of the
Attorney General within 270 days of the date of the letter granting
the approval of the credit enhancement. The initial approval for the
credit enhancement will expire at the end of the 270-day period. The
commissioner may extend the 270-day period, based on extraordinary
circumstances, on receiving a written request from the open-enrollment
charter holder before the expiration of the 270-day period.
(9) If an open-enrollment charter holder does not receive
a credit enhancement or for any reason does not receive approval of
the bonds from the Office of the Attorney General within the specified
time period, the open-enrollment charter holder may reapply in a subsequent
month. Applications that were denied a credit enhancement will not
be retained for consideration in subsequent months.
(10) If the bonds are not approved by the Office of
the Attorney General within 270 days of the date of the letter granting
the approval of the credit enhancement, the commissioner will consider
the application withdrawn, and the open-enrollment charter holder
must reapply for a credit enhancement.
(11) An open-enrollment charter holder may not represent
bonds as approved for credit enhancement for the purposes of pricing
or marketing the bonds before the date of the letter granting approval
of the credit enhancement.
(g) Application for the credit enhancement.
(1) Application process. Open-enrollment charter holders
must apply to the commissioner for the credit enhancement of eligible
bonds. The open-enrollment charter holder must submit, in a form specified
by the commissioner, the information required under this section and
any additional information the commissioner may require. The application
and all additional information required by the commissioner must be
received before the application will be processed. The application
must be accompanied by a fee to be set by the commissioner.
(A) The fee is due at the time the application for
the credit enhancement is submitted. An application will not be processed
until the fee has been received in accordance with the process prescribed
by the commissioner for remitting the fee on the application form.
(B) The fee will not be refunded to an open-enrollment
charter holder that:
(i) is not approved for the credit enhancement; or
(ii) does not sell its bonds before the expiration
of its approval for the credit enhancement.
(C) The fee may be transferred to a subsequent application
for the credit enhancement by the open-enrollment charter holder if
the open-enrollment charter holder withdraws its application and submits
the subsequent application for the same charter school before the
expiration of its initial approval for the credit enhancement.
(2) Application for the credit enhancement and charter
renewal or amendment.
(A) If an open-enrollment charter holder applies for
the credit enhancement during the school year in which the open-enrollment
charter holder's charter is due to expire, application approval will
be contingent on successful renewal of the charter, and the bonds
for which the open-enrollment charter holder is applying for the credit
enhancement may not be issued before the successful renewal of the
charter.
(B) If an open-enrollment charter holder proposes to
use the proceeds of the bonds for which it is applying for the credit
enhancement for an expansion that requires a charter amendment, application
approval will be contingent on approval of the amendment, and the
bonds may not be issued before approval of the amendment.
(3) Initial approval; denial. The TEA will notify an
applicant in writing of initial approval for or of denial for the
credit enhancement on the TEA's determination of whether the applicant
has met all applicable requirements. Notification of denial will include
the reasons for denial.
(4) Final approval. An open-enrollment charter holder
must receive final approval before completing the sale of the bonds
for which the open-enrollment charter holder has received notification
of initial approval.
(A) An open-enrollment charter holder that has received
initial approval must provide a written notice to the TEA two business
days before issuing a preliminary official statement (POS) for the
bonds that are eligible for the credit enhancement or two business
days before soliciting investment offers, if the bonds will be privately
placed without the use of a POS.
(i) The open-enrollment charter holder must receive
written confirmation from the TEA that the available capacity of money
allocated for the credit enhancement under this section continues
to be available and must continue to meet the requirements of subsection
(c) of this section before proceeding with the public or private offer
to sell bonds.
(ii) The TEA will provide this notification within
one business day of receiving the notice of the POS or notice of other
solicitation offers to sell the bonds.
(B) An open-enrollment charter holder that received
confirmation from the TEA in accordance with subparagraph (A) of this
paragraph must provide written notice to the TEA of the placement
of an agenda item on a meeting of the bond issuer's board of directors
to approve the bond sale no later than two business days before the
meeting. If the bond sale is completed pursuant to a delegation by
the issuer to a pricing officer or committee, notice must be given
to the TEA no later than two business days before the execution of
a bond purchase agreement by such pricing officer or committee.
(i) The open-enrollment charter holder must receive
written confirmation from the TEA that the capacity continues to be
available for the bond sale before the approval of the sale by the
bond issuer or by the pricing officer or committee.
Cont'd... |