| (a) In this section, "charter district," "combination
issue," and "refunding issue," have the meanings assigned to those
terms by §33.67 of this title (relating to Bond Guarantee Program
for Charter Schools).
(b) The following provisions apply to charter district
bonds guaranteed under §33.67 of this title that receive final
approval from the commissioner of education in the form of the permanent
school fund certificate before September 1, 2017.
(1) A charter district that has bonds guaranteed under
§33.67 of this title must annually remit to the commissioner
a payment for deposit in the Charter District Bond Guarantee Reserve
Fund established under the Texas Education Code (TEC), §45.0571,
as described in paragraphs (4) and (5) of this subsection.
(2) To calculate the total payments required under
paragraphs (4) and (5) of this subsection for charter district bonds
guaranteed under §33.67 of this title with a closing date before
March 1, 2017, the first annual amount due under this section is the
amount equal to 0.1% of the principal amount that is outstanding on
the date the bonds were issued, which is the closing date for the
bonds. The amount due annually for each subsequent payment due under
this section is the amount equal to 0.1% of the principal amount that
is outstanding on the anniversary of the closing date.
(3) To calculate the total payments required under
paragraphs (4) and (5) of this subsection for charter district bonds
guaranteed under §33.67 of this title with a closing date on
or after March 1, 2017, the commissioner will calculate an amount
equal to 10% of the savings to the charter district resulting from
the lower interest rate on the bond due to the guarantee by the permanent
school fund.
(A) The annual amount due to the Charter District Bond
Guarantee Reserve Fund will be computed as R = P x S x 0.1, where:
(i) "R" is the amount to be contributed to Charter
District Bond Guarantee Reserve Fund;
(ii) "P" is the outstanding principal amount on the
closing date of the bond for payments made under paragraph (4) of
this subsection or the outstanding principal amount on the anniversary
of the closing date of the bond for payments made under paragraph
(5) of this subsection; and
(iii) "S" is the savings to the charter district as
a result of the bond guarantee under §33.67 of this title, which
is computed as the difference between the preceding 36-month moving
average of the Thomson Reuters Municipal Market Data index yield for
the Baa twenty-year maturity and the preceding 36-month moving average
of the Thomson Reuters Municipal Market Data index yield for the AAA
twenty-year maturity. If the Thomson Reuters Municipal Market Data
index is discontinued, the commissioner shall choose another data
source for a reasonable period of time until this section can be amended
with another acceptable data source.
(I) The savings "S" shall remain constant for the life
of the newly guaranteed bond.
(II) If Thomson Reuters Municipal Market Data index
is decomposed to reflect each ratings step within the Baa universe,
the savings calculation shall be based on the charter district's actual
rating to the comparable rating in the decomposed index.
(B) The commissioner will semi-annually compute "S,"
which is the value to be used to compute "R" for charter district
bonds, and post it on the agency's website during the first week of
September and March.
(4) The first payment due under this section is due
within 30 days of the closing date. The commissioner will direct the
comptroller to withhold the amount of this first payment from the
state funds otherwise payable to the charter district, on a date that
falls within 30 days of the closing date. If, on that date, the state
funds remaining to be paid to the charter district for the year are
less than the amount due to the reserve fund for that year, the commissioner
will recover the difference as authorized under the TEC, §42.258.
(5) Each subsequent annual payment is due on the anniversary
of the closing date. The commissioner will direct the comptroller
to annually, during the month of the anniversary date, withhold the
amount due to the reserve fund for that year from the state funds
otherwise payable to the charter district. If, on the anniversary
date, the state funds remaining to be paid to the charter district
for the year are less than the amount due to the reserve fund for
that year, the commissioner will recover the difference as authorized
under the TEC, §42.258.
(6) The commissioner will provide a charter district
with a statement of the total and annual amounts due under this section
within 60 days of the date that the bonds approved for the guarantee
under §33.67 of this title are sold. The commissioner will calculate
savings for refunding issues, and the refunding portion of combination
issues, using the principal amount that is being refunded.
(7) No payment is due on an anniversary date on which
no principal amount is outstanding. The total amount due under this
section is the sum of all annual payments due.
(c) The following provisions apply to charter district
bonds guaranteed under §33.67 of this title that receive final
approval from the commissioner in the form of the permanent school
fund certificate on or after September 1, 2017, provided that such
payments shall only be required until the Charter District Bond Guarantee
Reserve Fund reaches the limit established under the TEC, §45.0571.
(1) A charter district that has bonds guaranteed under
§33.67 of this title must remit to the commissioner a payment
for deposit in the Charter District Bond Guarantee Reserve Fund established
under the TEC, §45.0571, as described in paragraph (3) of this
subsection.
(2) To calculate the payment required under paragraph
(3) of this subsection, the commissioner will calculate an amount
equal to 20% of the savings over the life of the bond to the charter
district resulting from the lower interest rate on the bond due to
the guarantee by the permanent school fund. The calculation will be
based on subsection (b)(3) of this section, but the formula in subsection
(b)(3)(A) of this section will read R = (P x S x 0.2) ÷ (1
+ PV)T .
(A) "PV" is the present value discount factor, which
is the yield to worst of the Bloomberg Barclays US Aggregate 3-5 Year
Bond Index on the last business day of the previous month. If the
Bloomberg Barclays US Aggregate 3-5 Year Bond Index is discontinued,
the commissioner shall choose another data source for a reasonable
period of time until this section can be amended with another acceptable
data source.
(B) "T" is the number of years from the anniversary
of the closing date of the bond.
(C) The payment is equal to the sum of the amount required
under subsection (b)(4) of this section and the present value of the
amounts required for each year of the bond under subsection (b)(5)
of this section.
(3) The payment due under this section is due within
30 days of the closing date.
(4) The charter district will estimate the amount due
prior to pricing the bonds. The commissioner will provide a charter
district with a statement of the amount due under this section after
the bonds approved for the guarantee under §33.67 of this title
are sold but before they close. The commissioner will calculate savings
for refunding issues, and the refunding portion of combination issues,
using the principal amount that is being refunded.
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| Source Note: The provisions of this §33.1001 adopted to be effective April 22, 2014, 39 TexReg 3227, amended to be effective February 23, 2017, 42 TexReg 687; amended to be effective October 29, 2017, 42 TexReg 6015 |
