| (a) Preliminary Requirements. Following a legislative
session in which bonds have been authorized for a project, the authority
and the client agency will confirm basic information concerning the
bond issue, such as the time, amount, and scope of the project, and
schedule an orientation meeting at their mutual convenience. In most
cases, a formal orientation meeting will be required and such a meeting
should occur before the authority must begin work on the bond issue,
but after the client agency has had sufficient time to prepare a preliminary
plan for the project.
(1) As part of the orientation, the authority will
provide the client agency the following information:
(A) an explanation of the bond issuance process in
plain language;
(B) a review of the specific tasks required for a bond
issue and the time needed for such tasks;
(C) a review of the documents, other information, if
any, and time requirements applicable to the client agency's request
for financing; and
(D) an identification of the authority's staff and
outside consultants who will work on the financing, by name and function.
(2) The client agency should be prepared to review
a detailed project description and project schedule during the orientation
meeting and identify the client agency's staff who will work with
the authority on the bond issue.
(3) If a client agency's staff is familiar with the
bond issuance process and the authority's requirements for issuing
bonds because they have participated in prior bond issuance transactions,
a formal orientation meeting is not required. The executive director
will insure that up-to-date information described in paragraph (1)(A)
- (D) of this subsection is provided to the client agency in an alternative
manner such as by schedules, memorandum, or telephone conference.
(b) Request for financing. A request for financing
under this section shall include:
(1) a resolution of the client agency's governing body
signed by the appropriate officer authorizing submission of the request
for financing and evidence of approval by any other individual or
body from which approval for debt issuance is required;
(2) a project summary, required by the authority for
application to the Bond Review Board; and
(3) an expenditure schedule.
(c) Amendment to request for financing. A client agency
may reschedule the date requested for authority consideration of the
bond issuance or amend its request by submitting an amendment to its
request for financing at any time prior to the authority board meeting
at which the issue will be considered.
(d) Board action. The request for financing will be
posted for consideration by the board at the next open meeting following
the authority's receipt of the request, for which timely public notice
may be given pursuant to Texas Government Code, Chapter 551. The client
agency will be informed promptly of a change in the board's meeting
date for the month and the exact date on which the request will be
considered.
(1) The board may either approve the request or require
additional information. When it approves a request for financing,
the board will also determine the type of public security to be issued
and the method of sale whether negotiated, competitive, or through
private placement.
(2) The board's approval of a request for financing
is deemed to constitute approval of the submission of an application
to the Bond Review Board for approval of the issuance of debt and
instruction to staff to proceed with submission of the application.
(3) If the board determines to sell bonds through a
negotiated sale, it will designate an underwriting syndicate in accordance
with authority's underwriter selection procedures.
(4) If the board determines to sell bonds through a
competitive sale, it will authorize the executive director and financial
advisor to prepare an invitation for competitive bids in the time
and manner required so that the board may approve the distribution
of the invitation and the Preliminary Official Statement at its open
meeting in the month immediately following.
(5) If the board determines to finance a request through
the issuance of commercial paper notes, staff shall proceed to complete
such issuances.
(e) At least one representative of a client agency
must attend any board meeting, including meetings of the Bond Review
Board, at which the client agency's financing request is considered,
unless otherwise advised by the executive director or the executive
director's designee.
(f) Procedures following board approval of a request
for financing through the issuance of bonds. As soon as possible following
the board's approval of a request for financing, the authority staff,
financial advisors, bond counsel, representatives of the client agency,
and, for negotiated sales, the senior manager of the underwriting
syndicate and its counsel, will convene an organization meeting to
prepare a schedule of events for the financing, and begin work on
the financing documents and an application for Bond Review Board approval
of the financing.
(1) In most cases, the application for Bond Review
Board approval will be submitted timely for consideration and approval
of the Bond Review Board at its next regularly scheduled meeting following
the board's approval of the request, however, the timing of the submission
is within the discretion of the executive director.
(2) After the Bond Review Board approves the financing,
the issuance and sale of the bonds may be scheduled and completed.
|
| Source Note: The provisions of this §221.3 adopted to be effective November 25, 1988, 13 TexReg 5749; amended to be effective December 15, 1998, 23 TexReg 12686; amended to be effective January 31, 2005, 30 TexReg 404; amended to be effective July 14, 2009, 34 TexReg 4641; amended to be effective April 25, 2013, 38 TexReg 2509 |
