| (IV) address and telephone number of purchaser;
(v) the investment letter is not required if the letter
regarding bonds in subparagraph (C) of this paragraph is provided.
(C) The letter regarding the bonds shall include a
letter from the underwriter, and/or a letter from the placement agent
or financial adviser, submitted on letterhead, that the bonds are
marketable; provided, that the following requirements are met:
(i) either the user or any guarantor has a current
rating on any of its outstanding securities from Moody's Investors
Service of Ba or higher or from Standard and Poor's Corporation of
BB or higher; or
(ii) the bonds sought to be issued have received a
rating from either Moody's or Standard and Poor's of at least Baa
or BBB, respectively.
(D) The bond counsel opinion, included in the application,
shall be submitted on counsel's letterhead in substantially the form
to be delivered at closing as to the effect that the bonds have been
duly issued and delivered by the corporation in compliance with the
Act. Bond counsel must be licensed in the State of Texas or a supplemental
opinion must be provided by Texas bond counsel.
(7) Agreements.
(A) Any agreements between the participants involved
in the transaction, including, but not limited to, the loan lease,
or sale agreement and the trust indenture, in which:
(i) the user and/or guarantor agrees to pay all project
costs which are not or cannot be paid or reimbursed from the proceeds
of bonds; and
(ii) the user and/or guarantor agrees at all times,
to indemnify and hold harmless the corporation, Office against all
losses, costs, damages, expenses, and liabilities of whatsoever nature
(including, but not limited to, attorney's fees, litigation and court
costs, amounts paid in settlement, and amounts paid to discharge judgments)
directly or indirectly resulting from, arising out of, or related
to the issuance, offering, sale, delivery, or payment of the bonds,
and interest thereon, or the design, construction, installation, operation,
use, occupancy, maintenance, or ownership of the project;
(iii) written notification is provided to the Office
by the trustee, depository, or lender as appropriate, in the event
of a default in the timely payment of monies due in payment of the
bonds or interest coupons or upon notification of the trustee by the
Internal Revenue Service that the interest is, or may be, subject
to federal income taxation;
(iv) a provision is included stating that no additional
or refunding bonds will be issued or delivered without prior Office
approval; and
(v) a provision is included stating that, by virtue
of the project being financed under the Act, the user has not and
will not maintain that it is entitled to an exemption from Texas sales
or use taxes on personal property acquired in connection with the
project.
(B) Copies of official statement, placement agent agreement,
bond purchase agreement, letter of credit agreement, and instrument
of guarantee, if any, shall be included as part of the application
submitted to the Office.
(C) If applicable, public hearing information required
by the Tax Reform Act of 1986, §147(f), shall be included.
(8) Project approval standards--generally.
(A) The proposed project will contribute to the economic
growth or stability of the unit by:
(i) increasing or stabilizing employment opportunity;
(ii) significantly increasing or stabilizing the property
tax base; and
(iii) promoting commerce within the unit and the state.
(B) The user has no present intention of disposing
of or abandoning the proposed project.
(C) The user has no present intention of directing
the proposed project to a use other than the purposes represented
to the Office and, if appropriate, the city or county.
(D) If applicable, the user must certify and represent
that no car, truck, mobile unit, or any vehicle of any kind whatsoever,
which is financed in whole or in part by the proceeds of the bonds,
will be away from the project site for more than 30 continuous calendar
days and that all cars, trucks, mobile units, or vehicles of any kind
whatsoever, financed in whole or in part by the proceeds of the bonds,
will be rendered on the local tax rolls.
(9) Special rules for commercial projects in economically
depressed counties. The Office will not approve the financing of projects
which are to be used for commercial projects in counties except in
conformity with this section and the project approval standards set
forth in paragraph (8) of this subsection.
(A) To establish an eligible county, the commissioners'
court of the county (the governing body) shall provide evidence satisfactory
to the Office that:
(i) the county is a federally designated economically
distressed county; and
(ii) the population of the county is less than 50,000
according to the last federal decennial census.
(B) The Office may, but shall not be required to suggest
limitations as to the amount or type of projects to be financed for
commercial purposes under the Act and this chapter within such county.
(C) If the governing body of the county shall conclude
to request the Office to approve projects for commercial uses, it
shall adopt a resolution citing the Act and this chapter, and further
containing:
(i) a description or a map of the boundaries of the
county, and if practicable, the location of any proposed project;
(ii) a description of the overall objectives of the
county for redevelopment and recovery of the county, if any;
(iii) a finding and representation to the Office that
the availability of financing of projects for commercial uses under
the Act will contribute significantly to the alleviation of the economically
depressing conditions found to exist in the county;
(iv) a description of the type of projects for commercial
uses desired and authorized by the county to enhance its redevelopment
efforts, together with a description of any exclusions or limitations
by type or amount of commercial project uses which the county would
consider detrimental to its efforts to redevelop the county; and
(v) based upon the county's best estimates at the time
of adoption of the resolution, a description of proposed public improvements,
if any, to be made within reasonable proximity to the proposed commercial
project, the estimated commencement date of such public improvements,
the approximate schedule for such improvements, and the sources of
funds which the county will use for such purposes.
(D) Upon certification of the eligibility of the affected
county as set forth in subparagraph (C) of this paragraph, the Office
will approve projects for commercial uses in the county only after
the applicant demonstrates that:
(i) the specific project conforms with any limitations
specified in the resolution as provided in this section;
(ii) the governing body of the county has approved
the project and made the determinations and findings required by this
chapter; and
(iii) the specific project to be financed for commercial
uses will significantly contribute to the fulfillment of the overall
redevelopment objectives of the county, if any; and the project conforms
to the project approval standards specified in paragraph (8) of this
subsection.
(10) Refunding issues.
(A) A complete application shall be submitted to the
Office for approval of a refunding issue, unless such bond issue does
not exceed the outstanding amount of the refunded bond.
(B) If the refunding issue does not exceed the outstanding
amount of the refunded bond, then the application to the Office shall
contain the following:
(i) information outlined in paragraphs (1) - (6) of
this subsection; and
(ii) pursuant to paragraph (7) of this subsection,
the application shall also include the official statement and any
supplemental agreements relating to the refunding issue, if any, and
all others that have not been previously approved by the Office.
(C) The application for approval of a refunding issue
shall reference, by Office docket number, the application originally
approved by the Office.
(11) Miscellaneous information.
(A) Closing information. Each application shall contain
the proposed time, date, and location for the closing of the transaction
and delivery of the bonds.
Cont'd... |
