| (1) evidence that applicable requirements and regulations
of all identified local, state, and federal agencies having jurisdiction
have been met, including but not limited to permits and authorizations;
(2) an executed principal forgiveness agreement adopted
by the governing body that is acceptable to the executive administrator.
The agreement must have the following sections:
(A) if financial assistance proceeds are to be deposited
into an escrow account at the time of closing, then an escrow account
separate from all other accounts and funds must be created, as follows:
(i) the account must be maintained by an escrow agent
as defined in §371.1 of this title;
(ii) funds cannot be released from the escrow account
without prior written approval from the executive administrator, who
shall issue written authorization for the release of funds;
(iii) escrow account statements must be provided to
the executive administrator upon request;
(iv) the investment of any financial assistance proceeds
deposited into an approved escrow account must be handled in a manner
that complies with the Public Funds Investment Act, Texas Government
Code Chapter 2256; and
(v) the escrow account musts be adequately collateralized
in a manner sufficient to protect the Board's interest in the project
and in compliance with the Public Funds Collateral Act, Texas Government
Code Chapter 2257;
(B) the Applicant must fix and maintain rates in accordance
with state law and collect charges to provide adequate operation and
maintenance of the project;
(C) a construction account separate from all other
accounts and funds of the Applicant must be created;
(D) insurance coverage must be obtained and maintained
in an amount sufficient to protect the Board's interest in the project;
(E) the Applicant, or an obligated person for whom
financial or operating data is presented, either individually or in
combination with other issuers of the Applicant's obligations or obligated
persons, must undertake in a written agreement or contract to comply
with requirements for continuing disclosure as required by Securities
and Exchange Commission (SEC) rule 15c2-12 and determined as if the
Board were a Participating Underwriter within the meaning of such
rule. Such continuing disclosure undertaking is for the benefit of
the Board and the beneficial owner of the political subdivision's
obligations if the Board sells or otherwise transfers such obligations,
and the beneficial owners of the Board's bonds if the political subdivision
is an obligated person with respect to such bonds under rule 15c2-12.
The ordinance or resolution required in subsection (a)(2) of this
section, must also contain any other requirements of the SEC or the
IRS relating to arbitrage, private activity bonds, or other relevant
requirements regarding the securities held by the Board;
(F) current, accurate, and complete records and accounts
must be maintained in accordance with generally accepted accounting
principles to demonstrate compliance with requirements in the financial
assistance documents;
(G) the Applicant must annually submit an audit prepared
by a certified public accountant in accordance with generally accepted
auditing standards;
(H) the Applicant must submit a final accounting within
60 days of the completion of the project;
(I) the Applicant must document the adoption and implementation
of an approved water conservation plan for the duration of the financial
assistance;
(J) the Applicant must comply with special environmental
conditions specified in the Board's environmental finding as well
as with any applicable Board laws or rules relating to use of the
financial assistance;
(3) assurances that the Applicant will comply with
any special conditions specified by the Board's environmental finding;
(4) if the project will result in the development of
surface water or groundwater resources, the Applicant must provide
information showing that it has the legal right to use the water that
the project will provide. Upon receipt of the information, the executive
administrator will prepare a finding that the Applicant has a reasonable
expectation of obtaining the water rights to the water that the project
will provide prior to any release of funds for planning, land acquisition,
and design activities. Prior to the release of funds for construction,
a written water rights certification will be prepared by the executive
administrator. The certification will be based upon the Applicant's
information showing the necessary water rights have been acquired;
(5) evidence that the Applicant has the technical,
managerial, and financial capacity to maintain the system unless the
use of the funds will be to ensure that the system has the technical,
managerial, and financial capacity to comply with the national primary
or applicable state drinking water regulations over the long term;
(6) when any portion of the financial assistance is
to be held in an escrow account, the Applicant must execute an escrow
agreement approved as to form and substance by the executive administrator;
(7) if applicable, a home rule municipality pursuant
to Texas Local Government Code Chapter 104 must execute a Certification
of Trust as defined in §371.1 of this title; and
(8) any additional information specified in writing
by the executive administrator.
|
