The following words and terms, when used in this chapter, shall
have the following meanings, unless the context clearly indicates
otherwise.
(1) Act--The Development Corporation Act, Texas Local
Government Code, Title 12, as amended.
(2) Applicant--An EDC filing an application for a Texas
Leverage Fund program loan.
(3) Application--The information submitted by an applicant
to the Office, including supporting documentation and schedules, required
by the Office for loan underwriting and loan approval under this program.
(4) Approval--The executive director's, or his/her
designee's, approval of the terms and conditions for a program loan
and loan agreement between the Office and the EDC.
(5) Bank--The financial institution providing credit
facilities for this program.
(6) Board of directors--The governing body of an EDC.
(7) City--The governmental entity creating the EDC.
(8) Cost--As defined by the Act, §501.002(6) as
applied to the use of program loan proceeds to fund eligible projects.
(9) Debt Service Coverage Ratio--The ratio of the projected
or actual sales and use tax receipts generated by the levy and collection
of the economic development sales and use tax by the city for the
benefit of an EDC, which sales and use tax receipts shall be determined
by using the lowest 12 consecutive months of sales and use tax receipts
of the 18 months immediately preceding the date of determination thereof,
to the scheduled maximum annual principal of and interest on the program
loan plus the scheduled maximum annual principal of and interest on
any other debt or obligation existing on the date of the program loan
secured in whole or in part by and payable from such economic development
sales and use tax on a parity with the proposed program loan and giving
the holder thereof an equal and ratable claim to the proceeds of the
economic development sales and use tax. In the event that an economic
development sales and use tax has not been previously collected or
has not been collected for at least 18 months, then there shall be
estimated by the Office the economic development sales and use tax
that may have been collected over that period had such economic development
sales and use tax been in place.
(10) Economic development sales and use tax--That certain
sales and use tax that may be levied by a city for the benefit of
an EDC under either Chapter 504 or Chapter 505 of the Act.
(11) EDC--An economic development corporation created
by a city pursuant to Chapter 504 or Chapter 505 of the Act.
(12) Executive director--The executive director of
the Office.
(13) Federally assisted new communities--As defined
by the Act, §2(11)(C) and §180.2(a)(3)(M) of this title
(relating to Industrial Revenue Bond Program).
(14) Full time equivalent job--Permanent employment
for 1,820 hours or more per year.
(15) Interest rate--The floating prime or base rate
published in the Wall Street Journal from time to time (Wall Street
Journal Prime Rate) or the interest rate in effect under the Program
guidelines from time to time.
(16) Largest Four Year Sales Tax Decline--A decline
in the total sales tax receipts of the city calculated as follows:
(HIGH - LOW) / HIGH X 100. For the purpose of this definition "LOW"
shall mean the lowest sum of sales tax revenue receipts collected
by a city for any calendar year (adjusted for changes in sales tax
rates) during the four year period preceding the date of calculation,
as determined from the most recent June 30 or December 31, as applicable,
for which sales tax data is available, and "HIGH" shall mean the highest
sum of sales tax revenue received collected for any calendar year
(adjusted for changes in sales tax rates) during the four year period
preceding the date of calculation, as determined from the most recent
June 30 or December 31, as applicable, for which sales tax data is
available and which occurred in a calendar year preceding the calendar
year in which the "LOW" occurred.
(17) Largest Fifteen Year Sales Tax Decline--A percentage
decline in the total sales tax receipts of a participating city calculated
as follows: (HIGH - LOW) / HIGH X 100. For purposes of this definition
"LOW" shall mean the lowest sum of sales tax revenue receipts collected
by the city for any calendar year (adjusted for changes in sales tax
rates) during the 15 year period preceding the date of calculation,
as determined from the most recent December 31, and "HIGH" shall mean
the highest sum of sales tax revenue receipts collected for any calendar
year (adjusted for changes in sales tax rates) during this same period
and which occurred in a calendar year preceding the calendar year
in which the "LOW" occurred.
(18) Office--The Economic Development and Tourism Office
in the Office of the Governor.
(19) Parity debt--Debt or other obligations, existing
or incurred during the term of the program loan, secured in whole
or in part by and payable from the economic development sales and
use tax receipts of the city on a parity with the program loan and
giving the holder an equal and ratable claim to the proceeds of the
economic development sales and use tax.
(20) Program--The Texas Leverage Fund.
(21) Program guidelines--The Office guidelines relating
to the program in effect at any particular time pursuant to the Act
and the authority granted to the Office under the Master Resolution
and First Supplemental Resolution, as amended.
(22) Program loan--Loan from the Office to the EDC
under the program.
(23) Project--An eligible project as defined by the
Act.
(24) Projected Debt Service--The scheduled maximum
annual debt service on all parity debt including any program loan.
(25) Rating--The long-term general obligation debt
rating assigned by a rating agency. Any reference in this chapter
to the rating structure of one rating agency shall be deemed to include
a reference to the equivalent rating or ratings of the other rating
agency.
(26) Rating agency--Standard Poor's Corporation, Moody's
Investors Service and Fitch Investors Service, Inc.
(27) Resolution--The resolution, order, ordinance,
or other official action by the governing body of the city or EDC.
(28) Rules--The rules of the Office.
(29) State--The State of Texas.
(30) Texas Enterprise Zone Act--Texas Government Code, §§2303.001
et seq., as amended.
(31) Texas Leverage Fund--The economic development
program of the Office pursuant to which the Office makes loans, meeting
certain criteria in accordance with the Master Resolution and First
Supplemental Resolution, as amended, to certain EDCs to fund the cost
of certain eligible projects as defined by the Act and which loans
are secured by and paid from the economic development sales and use
tax receipt proceeds.
(32) Trustee--A corporation with corporate trust powers
serving in the capacity of trustee under the Office's Taxable Commercial
Paper Notes Series A pursuant to a trust agreement between the corporation
and the Office under the Master Resolution and First Supplemental
Resolution, as amended.
(33) User--An individual, partnership, corporation,
or any other private entity, whether organized for profit or not for
profit, or a city, county district, or any other political subdivision
or public entity of the state or federal government.
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